United States v. Home Concrete & Supply, LLC

A tax provision, unchanged in relevant part since 1939 and reenacted in 1954, extended the government's normal three-year window to assess penalties when a taxpayer underreported gross income. In 1958, the Supreme Court's Colony decision interpreted this provision to mean the extended period did not apply when a taxpayer understated income by overstating the basis of sold property. In 2000, Home Concrete (plaintiff) understated its gain by overstating its basis; relying on new 2010 Treasury regulations interpreting the provision the opposite way, the government assessed a penalty outside the normal three-year window. Home Concrete sued, the district court ruled partly for the government, the court of appeals reversed, and the Supreme Court granted certiorari to decide whether Colony or the new regulation controlled.