TBS 1 Harold Thompson, a self-employed individual, had income transactions for Year 1 (duly reported on his return filed in April Year 2) as follows: Gross receipts $400,000 Less cost of goods sold and deductions (320,000) Net business income $ 80,000 Capital gains 36,000 Gross income $116,000 In March Year 5. Thompson discovers that he had inadvertently omitted some income on his Year 1 return. He retains Mann, CPA, to determine his position under the statute of limitations Mann should advise Thompson that the 6-year statute of limitations would apply to his Year 1 return only if he omitted from gross income an amount in excess of