Justices to Examine Assessment Period for Basis Overstatements

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The U.S. Supreme Court announces that it will resolve the split in the federal circuits over the issue of whether IRS's extended assessment period applies to a partnership's use of a tax shelter transaction to avoid capital gains taxes by understating its basis in goods sold. The high court granted certiorari to United States v. Home Concrete & Supply LLC, 634 F.3d 249 (4th Cir. 2011), in which the Fourth Circuit found that an overstatement of basis stemming from a partnership's use of a tax shelter transaction does not trigger tax code Section 6501(e)(1)(A)'s six-year limitations period because the overstatement was not an omission from gross income.