Eric B. Benson, et al. - Page 10

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          (interpreting similar language in section 275(c), the predecessor           
          to section 6501(e)).  The period of limitations starts to run               
          with the filing of the original return, and the filing of an                
          amended return does not affect the period of limitations.                   
          Insulglass Corp. v. Commissioner, 84 T.C. at 207; Goldring v.               
          Commissioner, supra at 82.                                                  
          I.   Disclosures Under Section 6501(e)(1)(A)(ii)                            
               ERG was a subchapter C corporation that was a taxable                  
          entity.  NPI was a subchapter S corporation and as such was a               
          passthrough entity that was not taxable.  Burton Benson                     
          controlled the operations of both of these entities.                        
               The Bensons first argue that the determinations sustained in           
          our prior opinion were not omissions of gross income but                    
          reallocations of reported corporate income and expenses to Burton           
          Benson as the controlling shareholder of ERG.  In particular, the           
          Bensons argue that NPI’s Forms 1120S, U.S. Income Tax Return for            
          an S Corporation, including amended Forms 1120S, disclosed                  
          royalties, engineering services,6 and rents7 that NPI received              

               6 In our prior opinion, we found that transfers made by ERG            
          to NPI of $483,098 in 1989, $3.6 million in 1993, and $160,063 in           
          1994 constituted constructive dividends to the Bensons.  Benson             
          v. Commissioner, T.C. Memo. 2004-272.                                       
               7 In our prior opinion, we held that the Bensons received              
          constructive dividend income of $40,067 in 1990, $46,560 in 1993,           
          and $63,444 in 1994 from excess rent paid by ERG for its use of             
          the Stanford plant.  Id.  We also held that the Bensons received            
          constructive dividend income of $29,400 in 1989, $29,400 in 1990,           

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