The Tax Court may apply the Cohan rule where a person establishes the payment of a deductible expense but can’t show the precise amount. But the court won’t use this rule to approximate expenses when there is no basis for the estimate. That was shown in a recent case where a notary/paralegal took deductions for business meals that weren’t substantiated. Her only claim: she “talked strategies;” there was no corroborating evidence. #IdeaoftheDay
