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Case: Schedule A, Schedule C Expenses Not Substantiated for Deduction (T.C. Memo) (IRC §274)

May 4, 2021, 5:00 AM

IRS did not err in disallowing a taxpayer’s deductions claimed for certain business expenses, charitable contributions, and state and local tax for failure to properly substantiate such deductions, the U.S. Tax Court held in a memorandum opinion. Taxpayer, a paralegal, performed services for paying and non-paying clients. On her Schedule A, Taxpayer claimed charitable and state and local tax deductions. On her Schedule C she claimed car and truck expenses, advertising, meals and entertainment, and “other” expenses leading to a loss. The IRS denied all for lack of substantiation and failure to show the expenses on Schedule C were ordinary...

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