- 41 -
T.C. 546, 553 (1984), affd. 774 F.2d 644 (4th Cir. 1985); Ghadiri
v. Commissioner, T.C. Memo. 1996-528; Hittleman v. Commissioner,
T.C. Memo. 1990-325, affd. without published opinion 945 F.2d 409
(9th Cir. 1991). Accordingly, respondent must introduce
affirmative evidence to meet his burden. Ghadiri v.
Commissioner, supra. On brief, the parties agree that our
opinion on the merits will determine whether the period of
limitations bars respondent’s assessment for 1989, 1990, 1993,
and 1994.
For respondent to prevail with respect to the 1988 taxable
year, we must find fraud, which we do not. However, as discussed
infra, we do find that respondent has proved substantial
omissions of income in 1989, 1990, 1993, and 1994. The Bensons
argue on brief that the only way respondent can show a 25-percent
omission is by proving that they had constructive dividends. We
have found that substantial constructive dividends were received.
On brief, respondent refers to this matter as a computational
issue. A recomputation of the Bensons’ income under Rule 155
pursuant to our findings and holdings herein will control whether
the Bensons omitted from gross income an amount which is in
excess of 25 percent of the amount of gross income stated in the
returns. If there was such an omission the period of limitations
in section 6501(a) will not bar assessment for those years. See
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