- 26 -
Items of omitted Amounts asserted 1Amounts asserted
gross income by the Bensons by respondent
ERG recreation account $2,698 --
Alice Lane--property taxes 8,196 --
Automobile expenses 14,723 --
Director’s fees 37,000 --
Esther Benson check 12,000 --
Townsend check 15,000 --
Travel expenses 26,690 --
Legal expenses 34,159 --
Employee relation’s fund 44,027 --
Education expenses 9,166 --
Life insurance 4,781 --
Additional dividends 586 --
Total 119,026 $399,826
1 On brief, respondent failed to itemize the Bensons’ 1994
omitted gross income and provided only the total amount of the
Bensons’ omitted gross income.
2 In Benson v. Commissioner, T.C. Memo. 2004-272, we held
that Burton Benson received constructive dividend income of
$3,889 from travel expenses. We will use this amount to
calculate the Bensons’ omitted gross income.
3 In Benson v. Commissioner, supra, we held that Burton
Benson received constructive dividend income of $4,033 from legal
expenses paid by ERG. We will use this amount to calculate the
Bensons’ omitted gross income.
4 In Benson v. Commissioner, supra, we held that the Bensons
received constructive dividend income of $3,035 from amounts paid
by ERG for the employee relation fund. We will use this amount
to calculate the Bensons’ omitted gross income.
The parties argue that the Bensons reported gross income in 1994
as follows:
Items of gross Amounts asserted Amounts asserted
income by the Bensons by respondent
Wages $196,000 $196,000
Interest 7,105 7,105
Less: Baden Spiel Haus -- 1(4)
flowthrough interest
Less: Hermsmeir partnership -- 1(411)
flowthrough interest
Dividends 29,327 62,748
Less: NPI flowthrough -- 1(62,735)
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