. And by gross income, I mean gross income includingdisclosed in the return, or in a statement attached to the return, in a manner adequate to apprise the Secretary of the nature and amount of such item.
(i) In the case of a trade or business, ... the total of the amounts received or accrued from the sale of goods or services (if such amounts are required to be shown on the return) prior to diminution by the cost of such sales or services;
This standard of disclosure compels "greater disclosure than is necessary to avoid the 6-year statute of limitations provided for in section 6501(e)(1)(A)".
It is no more right to allow a party to blow hot and cold as suits his interest in tax matters than in other relationships whether it be called estoppel, or a duty of consistency, or the fixing of a fact by agreement, the fact fixed for one year ought to remain fixed in all its consequences.
Beltzer, 495 F.2d at 212-13. Or, to paraphrase the hackneyed aphorism, Eagan cannot retain his cake and consume it as well. The decision of the district court is affirmed.
The 6-year statute may well apply, depending on the amount of gross income omitted and not disclosed. If it does, then IRS must assert it. Then taxpayer must refute it by showing adequate disclosure. This Heckman case has a good discussion of what is or is not such disclosure.
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