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6501(e)(1)(A) to modify the definition of gross income in the
case of trades or businesses. Except for that modification, “the
general definition of gross income found in the Code applies.”
Northern Ind. Pub. Serv. Co. & Subs. v. Commissioner, 101 T.C.
294, 299 n.7 (1993).
However, taxpayers’ tax returns ordinarily do not provide
any place for stating gross income.13 See, e.g., Estate of Klein
v. Commissioner, 537 F.2d at 704; Davis v. Hightower, 230 F.2d
549, 552, 553 (5th Cir. 1956). We have held that “total income”,
as used in the Form 1040 is not the equivalent of “gross income”
for purposes of the extended statute of limitations. See Green
v. Commissioner, 7 T.C. at 276-277. As a result, we have dealt
with the taxpayers’ tax returns by determining whether one or
another item was properly an item of gross income within the
appropriate contemporary statutory definition of gross income.
As noted, supra, when the taxpayers’ tax returns stated
taxable income from partnerships or S corporations, we declared
that the information returns of these pass-through entities would
be treated as adjuncts to, and part of, the taxpayers’ tax
returns. See, e.g., Davenport v. Commissioner, supra
13See supra our findings with regard to the Harlans’ 1985
tax return. Note that the parties have stipulated that the
Harlans’ gross income stated on their tax return ($1,410,077) is
almost $200,000 more than the amount that the Harlans’ tax return
labeled as gross income ($1,216,099), even without taking account
of flow of gross income from the 2d-tier partnerships.
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