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estoppel, as established by the Court in Huddleston, are not
present in this case.
Has the 3-Year Statute of Limitations Run Against Respondent
Section 6501(a) generally provides that any tax due may be
assessed within 3 years from the later of the due date of the
return or the date the tax return is actually filed. Coleman v.
Commissioner, 94 T.C. 82, 89 (1990); Bailey v. Commissioner, T.C.
Memo. 1970-64, affd. per curiam 439 F.2d 723 (6th Cir. 1971).
However, section 6501(e)(1)(A) provides that any tax due may be
assessed within 6 years from the later of the due date of the
return or the date the tax return is actually filed where a
taxpayer, on the tax return, omits from gross income an amount
properly includable therein that is in excess of 25 percent of
the amount of gross income reported on the tax return. Colony,
Inc. v. Commissioner, 357 U.S. 28, 36 (1958); Estate of Frane v.
Commissioner, 98 T.C. 341, 354 (1992), affd. in part, revd. in
part 998 F.2d 567 (8th Cir. 1993); Bailey v. Commissioner, supra.
Respondent has the burden of proof, under section 6501(e), to
show: (1) That the amount omitted from gross income exceeds 25
percent of the gross income reported on the tax return; and (2)
that the amount omitted from gross income was properly includable
in the taxpayer's gross income. Colestock v. Commissioner, 102
T.C. 380, 383 (1994); Bardwell v. Commissioner, 38 T.C. 84, 92
(1962), affd. 318 F.2d 786 (10th Cir. 1963); Reis v.
Commissioner, 1 T.C. 9, 12-13 (1942), affd. 142 F.2d 900 (6th
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