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UNITED STATES v. HOME CONCRETE & SUPPLY

Docket No.: 11-139
Certiorari Granted: 09/27/11
Argued: January 17, 2012
Decided: 04/25/12

Topics:

Bill of Rights, Internal Revenue Code, Natural Resources, chapter 11, patent, separation of powers, stare decisis

PartyNames: United States v. Home Concrete & Supply, LLC, et al.
Petitioner: United States
Respondent: Home Concrete & Supply, LLC, et al.

Court Below: United States Court of Appeals for the Fourth Circuit
Citation: 634 F.3d 249

United States
v.
Home Concrete & Supply, LLC, et al.
Background:

As a general matter, the Internal Revenue Service (IRS) has three years to assess additional tax if the agency believes that the taxpayer's return has understated the amount of tax owed. 26 U.S.C. 6501(a). That period is extended to six years, however, if the taxpayer "omits from gross income an amount properly includible therein which is in excess of 25 percent of the amount of gross income stated in the [taxpayer's] return." 26 U.S.C. 6501(e)(1)(A).

Question Presented:

1. Whether an understatement of gross income attributable to an overstatement of basis in sold property is an "omi[ssion] from gross income" that can trigger the extended six-year assessment period. 2. Whether a final regulation promulgated by the Department of the Treasury, which reflects the IRS's view that an understatement of gross income attributable to an overstatement of basis can trigger the extended six-year assessment period, is entitled to judicial deference.

Question:

1. Can an understatement of gross income attributable to an overstatement of basis in sold property qualify as an "omi[ssion] from gross income" that triggers the extended six-year assessment period? 2. Is a final regulation from the Department of the Treasury reflecting the IRS's view that an understatement of gross income attributable to an overstatement of basis which can trigger the extended six-year assessment period entitled to judicial deference?

Note:

As a general matter, the Internal Revenue Service (IRS) has three years to assess additional tax if the agency believes that the taxpayer's return has understated the amount of tax owed. 26 U.S.C. 6501(a). That period is extended to six years, however, if the taxpayer "omits from gross income an amount properly includible therein which is in excess of 25 percent of the amount of gross income stated in the [taxpayer's] return." 26 U.S.C. 6501(e)(1)(A). The questions presented are as follows: 1. Whether an understatement of gross income attributable to an overstatement of basis in sold property is an "omi[ssion] from gross income" that can trigger the extended six-year assessment period. 2. Whether a final regulation promulgated by the Department of the Treasury, which reflects the IRS's view that an understatement of gross income attributable to an overstatement of basis can trigger the extended six-year assessment period, is entitled to judicial deference.

UNITED STATES v. HOME CONCRETE & SUPPLY
ORAL ARGUMENT

01/17/12

Listen to Oral Argument in UNITED STATES v. HOME CONCRETE & SUPPLY
Holding: AFFIRMED
Vote: 5-4
Majority: Breyer,Delivered The Opinion Of The Court,Chief Justice Except As To Part Iv-C. Roberts,Thomas,Alito
Concurring: Scalia
Dissenting: Kennedy, Ginsburg, Sotomayor, Kagan
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