Supreme Court of the United States

United States v. Home Concrete & Supply, LLC

April 25, 2012132 S. Ct. 1836

Summary

The Supreme Court held that 26 U.S.C. § 6501(e)(1)(A)'s extended 6-year statute of limitations does not apply when a taxpayer overstates basis in property. The Court relied on its earlier decision in Colony, Inc. v. Commissioner, concluding stare decisis bars the Treasury Regulation from overriding that interpretation. Justice Kennedy dissented, arguing the 1954 Code amendments opened the statute to agency interpretation. Justice Scalia concurred in the judgment, criticizing the Court's administrative law reasoning.