Eric B. Benson, et al. - Page 34

                                       - 34 -                                         
          Capital gain                                    492                         
               distributions                                                          
               Taxable refunds                         29,327                         
               Rents                                        36,156                    
               Royalties                                    1,340                     
               Other income (NPI Salary)               200,000                        
               Evelyn Hermsmeir                        100,620                        
               partnership                                                            
               Bensons’ share of                       243,094                        
               NPI income                                                             
               Bensons’ share of                            579                       
               Baden Spiel Haus                                                       
               partnership                                                            
               Total                                   814,311                        

          The Bensons have omitted more than 25 percent of their reported             
          gross income in 1994.18                                                     
               Even assuming that the Bensons correctly calculated the                
          amount of reported gross income as $1,011,740, they have omitted            
          more than 25 percent of the reported gross income in 1994.19  We            
          hold that the 6-year period of limitations applies to the                   
          Bensons’ 1994 tax year as provided by section 6501(e)(1)(A).                
          III. Conclusion                                                             
               In conclusion, we hold that the Bensons omitted from gross             
          income amounts that exceed 25 percent of their reported gross               








               18 $337,092 / $814,311 equals 41.396 percent.                          
               19 $337,092 / $1,011,740 equals 33.318 percent.                        





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