Eric B. Benson, et al. - Page 34

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          respectively, which respondent denied for lack of substantiation.           
          The Bensons conceded respondent’s determination for all years               
          except 1994.  See appendix, par. 13.                                        
          6. Evelyn Hermsmeier Partnership                                            
               During the years 1988, 1989, 1990, and 1993, Elizabeth was a           
          partner holding a 50-percent interest in the Evelyn C. Hermsmeier           
          et al. partnership.  Evelyn C. Hermsmeier, f.k.a. E.C. Ford, is             
          the sister of Elizabeth.  For the years listed, gross income of             
          the partnership was as follows:40                                           
                    Tax Year               Gross Income                               
                         1988                $263,448                                 
                         1989                274,683                                  
                         1990                242,700                                  
                         1991                282,059                                  
                         1992                202,192                                  
                         1993                185,770                                  
                         1994                201,239                                  
          7.  The Income Tax Returns                                                  
               (a) The Bensons                                                        
               On July 25, 1994, the Bensons filed their 1988 Federal                 
          income tax return through respondent’s revenue agent.  The 1988             
          return was filed after the October 15, 1989, due date, as                   
          extended.  On September 16, 1994, the Bensons filed their 1989              
          Federal income tax return through respondent’s revenue agent.               

               40On brief, respondent indicated that facts pertaining to              
          the Evelyn Hermsmeier Partnership relate “solely to the issue of            
          substantial omission of income pursuant to” sec. 6501(e).  Income           
          or loss from the partnership was reported on the Bensons’ 1989,             
          1990, 1993, and 1994 Schs. E as Elizabeth’s distributive share.             





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