Joseph S. Rozpad and Kathleen M. Rozpad - Page 10

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             burden of proving it erroneous.  Rule 142(a).  Petitioners have                                      
             offered neither arguments nor evidence to contradict respondent's                                    
             determination.  Accordingly, we affirm respondent's                                                  
             determination.  See Church v. Commissioner, 80 T.C. 1104 (1983);                                     
             Forest v. Commissioner, supra.                                                                       
             4.  Statute of Limitations                                                                           
                    The DiBiasios contend that respondent cannot assess or                                        
             collect any tax deficiency for their 1989 tax year because the                                       
             notice of deficiency was issued after the expiration of the 3-                                       
             year period of limitation on assessment and collection.  Sec.                                        
             6501(a).  Respondent, however, contends that the 6-year period of                                    
             limitation, which has not yet expired, is applicable because the                                     
             DiBiasios omitted 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".  Sec. 6501(e)(1)(A).                                          
             Respondent has the burden of proving that the exception applies.                                     
             Burbage v. Commissioner, 82 T.C. 546, 553 (1984), affd. 774 F.2d                                     
             644 (4th Cir. 1985).                                                                                 
                    On their 1989 Federal income tax return, the DiBiasios                                        
             reported gross income totaling $123,382.52 and omitted                                               
             approximately $450,000 (i.e., more than 25 percent of the gross                                      
             income reported).  Accordingly, the 6-year statute of limitation                                     
             is applicable.                                                                                       

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