Eric B. Benson, et al. - Page 12

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          returns of NPI will not prevent the 6-year period of limitations            
          of section 6501(e) from applying to the Bensons’ 1989, 1990,                
          1993, and 1994 tax years.                                                   
               Neither section 6501(e)(1)(A)(ii) nor the caselaw                      
          interpreting that section requires respondent to examine the                
          corporate returns of ERG in search of “clues” that disclose                 
          income.  The Bensons have not cited any authority to support                
          their contention that the returns of a taxable subchapter C                 
          corporation serve as an adjunct to an individual taxpayer’s                 
          return for purposes of section 6501(e)(1)(A)(ii).  Instead, the             
          Bensons rely on Benderoff v. United States, 398 F.2d 132 (8th               
          Cir. 1968), and Roschuni v. Commissioner, 44 T.C. 80 (1965),                
          which involve the returns of subchapter S corporations.  This               
          Court has explained that the returns of subchapter S corporations           
          and partnerships should be examined in conjunction with the                 
          individual taxpayer’s return because these entities are                     
          passthrough entities.  See Harlan v. Commissioner, 116 T.C. at 54           
          (“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”); Roschuni            
          v. Commissioner, supra at 85-86.  As a subchapter C corporation,            
          ERG is a taxable entity, it does not have the passthrough aspects           
          of an S corporation, and it files income tax returns, not                   

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