Doug, a self- employed consultant, has been a firm believer in maintaining a paperless office. Unfortunately, he recently lost all of his business records in a ransomware attack, and his backup system was also compromised. Which of the following cases should Doug investigate to better understand substantiation requirements for business expenses?

Question

Quizplus · Accepted Answer

The Cohan rule allows taxpayers to estimate certain business expenses when they lack complete records, which is relevant to Doug's situation of lost records.

Doug, a Self- Employed Consultant, Has Been a Firm Believer