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(using net worth method, Commissioner showed omission of net
income; held, Commissioner failed to carry burden of proving how
much of this omission was due to omission of gross income);
Seltzer v. Commissioner, 21 T.C. 398, 402-403 (1953)
(Commissioner failed to prove taxpayer’s basis in a sold capital
asset, and so “has not sustained his burden of proof to show”
that taxpayer omitted gross income which was more than 25 percent
of the gross income stated in her tax return); see also Colestock
v. Commissioner, 102 T.C. 380, 383, 390-391 (1994); Estate of Fry
v. Commissioner, 88 T.C. 1020, 1023 n.8 (1987); Stratton v.
Commissioner, 54 T.C. 255, 289 (1970), and cases there cited;
Philipp Bros. Chemicals, Inc. v. Commissioner, 52 T.C. 240, 254-
255 (1969), affd. 435 F.2d 53 (2d Cir. 1970); Rhombar Co. v.
Commissioner, 47 T.C. 75, 85 (1966), affd. 386 F.2d 510 (2d Cir.
1967); Bardwell v. Commissioner, 38 T.C. 84, 92 (1962), affd. on
another issue 318 F.2d 786 (10th Cir. 1963); Green v.
Commissioner, 7 T.C. 263, 277 (1946), affd. 168 F.2d 994 (6th
Cir. 1948).
The test for the extended limitations period under section
6501(e) may be expressed as a fraction. The numerator is the
amount of properly includable gross income that was omitted from
a taxpayer’s return, and the denominator is “the amount of gross
income stated in the return”. Sec. 6501(e)(1)(A). If the
fraction exceeds 25 percent, then the 6-year limitations period
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