Case: Rideshare Driver Denied Business Deductions for Lack of Substantiation (T.C. Bench) (IRC §162)

Rideshare driver denied car expenses for lack of detailed records, the U.S. Tax Court held in a bench opinion posted on the court’s website Jan. 21. Taxpayer operated a ridesharing business using his ex-wife’s car. The car contained receipts for the business. The car was in an accident and sold after being repaired before Taxpayer could retrieve the receipts. Taxpayer submitted a spreadsheet to corroborate the miles driven. The IRS denied the deduction due to lack of substantiation. The submitted spreadsheets did not contain enough specificity to determine allowance of a business deduction, the court held. The court also denied ...