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tax deficiency more than 3 years after the later of the date the
tax return was filed or the due date of the tax return. The
parties stipulated that the 3-year general period of limitations
on assessment under section 6501(a) expired for petitioners’ 1985
tax year before the respective notices of deficiency were sent.
Respondent has the burden of proving the applicability of an
exception to the general limitations period. See Rule 142; Reis
v. Commissioner, 142 F.2d 900 (6th Cir. 1944), affg. 1 T.C. 9, 12
(1942), as modified by a Memorandum Opinion of this Court dated
June 4, 1943. In particular, as respondent acknowledges, in
order for the 6-year period of limitations under section 6501(e)
to apply, respondent must show that the taxpayer has omitted an
amount of gross income which is more than 25 percent of the
amount of gross income stated in the tax return. See Davenport
v. Commissioner, 48 T.C. 921, 928 (1967) (taxpayers’ tax returns
showed net losses from a partnership; 6-year statute of
limitations did not apply because the Commissioner “has not shown
whether a partnership return was filed for those years and if so
the gross income reported thereon”); Hurley v. Commissioner, 22
T.C. 1256, 1264-1265 (1954), affd. 233 F.2d 177 (6th Cir. 1956)
8(...continued)
amount is disclosed in the return, or in a
statement attached to the return, in a manner
adequate to apprise the Secretary of the
nature and amount of such item.
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