Supreme Court upholds restrictive view of six-year tax assessment provision
By a 5-4 vote without a clear majority opinion, the U.S. Supreme Court today held that the overstatement of basis of an asset does not give rise to an omission of gross income for purposes of establishing a six-year period of limitations for assessment (United States v. Home Concrete & Supply, LLC).
In so doing, the Court placed a restriction on last year's opinion in Mayo Foundation for Medical Education and Research v. United States, which has been widely read as giving Treasury broad discretion in the interpretation of tax statutes.