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For the 6-year period of limitations to apply in this case,
respondent has the burden of proving by a preponderance of the
evidence that petitioner omitted from gross income an amount
properly includable therein which is in excess of 25 percent of
the amount of gross income stated in his 1989 and 1990 returns.
Sec. 6501(e)(1)(A); see Burbage v. Commissioner, 82 T.C. 546, 553
(1984), affd. 774 F.2d 644 (4th Cir. 1985); see also Grant v.
Commissioner, T.C. Memo. 1994-161 ("The burden is on respondent
to establish by a preponderance of the evidence that the 6-year
statute applies.")
The parties are in agreement that the amounts here in
dispute are in excess of 25 percent of the gross income shown on
petitioner's returns in 1989 and 1990. The question remaining,
therefore, is whether respondent has proven that such amounts
were "properly includable" in petitioner's gross income for those
years. Sec. 6501(e)(1)(A).
Section 61 defines gross income as "all income from whatever
source derived". This definition includes all "accessions to
wealth, clearly realized, and over which the taxpayers have
complete dominion." Commissioner v. Glenshaw Glass Co., 348 U.S.
426, 431 (1955).
Proof of omitted income by direct means is extremely
difficult and often impossible for respondent to accomplish. See
United States v. Abodeely, 801 F.2d 1020, 1023 (8th Cir. 1986).
Consequently, the Government has available to it a number of
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