United States Supreme Court

In a case in which the government asserted a deficiency, outside the 3-year limitations period of 26 USC section 6501(a), against a taxpayer who overstated the basis of certain property it had sold, it is held that the taxpayers' overstatements of basis, and resulting understatements of gross income, did not trigger the extended limitations period applicable when a 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 return,” as: 1) the issue had been decided in Colony, Inc. v. Commissioner, 357 U.S. 28 (1958); and 2) a more recent Treasury regulation was not entitled to Chevron deference because Colony eliminated any different construction of the statute available for adoption by the agency.

Appellate Information

• Decided 04/25/2012
• Published 04/25/2012

Judges

• Breyer

Court

• United States Supreme Court

Counsel