- 20 - amount of income. Sec. 6501(e)(1)(A). Section 6501(e)(1)(A) provides in part: If the taxpayer omits from gross income an amount properly includible therein which is in excess of 25 percent of the amount of gross income stated in the return, the tax may be assessed, or a proceeding in court for the collection of such tax may be begun without assessment, at any time within 6 years after the return was filed. * * * Respondent bears the burden of proving that the 6-year limit on the time to assess tax applies. Reis v. Commissioner, 1 T.C. 9, 13-14 (1942), affd. 142 F.2d 900 (6th Cir. 1944). b. Six-Year Requirement Less than 6 years after the due date for petitioner's 1976 and 1977 returns, petitioners signed Forms 872 to extend the time to assess tax to December 31, 1986. Respondent issued the notice of deficiency on December 23, 1986. Petitioners concede that respondent issued the notice of deficiency in time to qualify under section 6501(e)(1)(A) if more than 25 percent of gross income was omitted from each return. c. Twenty-Five Percent Omission From Gross Income Respondent must prove that petitioners omitted more than 25 percent of gross income from their 1976 and 1977 returns. Sec. 6501(e)(1)(A); Romine v. Commissioner, 25 T.C. 859, 871 (1956). Petitioners contend that respondent does not meet the 25 percent requirement. Petitioners contend that respondent may not rely on the general presumption of correctness of a deficiency notice to meet this burden, and that the mere existence of bankPage: Previous 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 Next
Last modified: May 25, 2011