Cohan Rule

Cohan Rule means:
a decision in the case of George M. Cohan, 2 USTC H489 (CA-2, 1930), the court allowed approximation for travel and entertainment expenses where no records existed. To benefit from the Cohan rule, a taxpayer must prove that he or she has taken all possible steps to provide documentation. Since 1962, travel and entertainment expenses have not been deductible without specific documentation. The courts still have the discretion to apply the Cohan rule to other items. Former IRC (check if this IRC provision is current here) §274(d).