home concrete supply llc et argued january decided april ordinarily government must assess deficiency taxpayer within years return filed period extended years taxpayer omits gross income amount properly includible therein excess percent amount gross income stated return respondent taxpayers overstated basis certain property sold result returns understated gross income received sale amount excess commissioner asserted deficiency outside limitations period within period fourth circuit concluded taxpayers overstatements basis resulting understatements gross income trigger extended limitations period held judgment affirmed affirmed justice breyer delivered opinion except part concluding apply overstatement basis pp colony commissioner interpreted provision internal revenue code containing language materially indistinguishable language issue holding taxpayer misstatements overstate basis property fall within statute scope recognized overstatement wrongly understates taxpayer income concluded phrase omits amount limited statute scope situations specific receipts left computation gross income also noted statute language unambiguous statutory history showed congress intended restrict extended limitations period situations include overstatements basis finally found conclusion harmony unambiguous language provision enacted part internal revenue code applicable pp colony determines outcome case operative language provision provision issue identical difficult give language different interpretation without overruling colony course action stare decisis counsels john sand gravel government suggests differences nearby parts code favor different interpretation one adopted colony however arguments fragile bear significant weight seeks place upon pp also rejects government argument recently promulgated treasury regulation interpreting statute operative language favor granted deference chevron natural resources defense council see national cable telecommunications assn brand internet services colony already interpreted statute longer different construction consistent colony available adoption agency pp breyer delivered opinion except part roberts thomas alito joined opinion full scalia joined except part scalia filed opinion concurring part concurring judgment kennedy filed dissenting opinion ginsburg sotomayor kagan joined opinion notice opinion subject formal revision publication preliminary print reports readers requested notify reporter decisions washington typographical formal errors order corrections may made preliminary print goes press petitioner home concrete supply llc et al writ certiorari appeals fourth circuit april justice breyer delivered opinion except part ordinarily government must assess deficiency taxpayer within years return filed period extended years however taxpayer omits gross income amount properly includible therein excess percent amount gross income stated return emphasis added question us whether latter provision applies extends ordinary limitations period taxpayer overstates basis property sold thereby understating gain received sale following colony commissioner hold provision apply overstatement basis hence period apply present purposes relevant underlying circumstances dispute consequently assume respondent taxpayers filed relevant tax returns april returns overstated basis certain property taxpayers sold result returns understated gross income taxpayers received sale property understatement exceeded statute threshold also take undisputed commissioner asserted relevant deficiency within extended limitations period outside default period thus unless statute limitations applies government efforts assert tax deficiency came late conclusion extended limitations period apply follows directly earlier decision colony ii colony interpreted provision internal revenue code operative language identical language us commissioner determined taxpayer understated gross profits sales certain lots land residential purposes result overstated lots erroneously including cost certain unallowable items development expense commissioner assessment came ordinary limitations period run consequently timely taxpayer words code omit ted gross income amount properly includible therein excess per centum amount gross income stated return code provision applicable case adopted contains materially indistinguishable language see ed replacing per centum percent see also appendix infra colony held taxpayer misstatements overstating basis property fall within scope statute recognized commissioner contrary argument inclusion code defined gross income context difference gross revenue often amount taxpayer received upon selling property basis often amount taxpayer paid property compare ed commissioner pointed overstatement basis diminish amount gain leaving item entirely return might either way error wrongly understates taxpayer income added commissioner argument fully account provision language particular word omit key phrase says omits amount word omits unlike say reduces understates means leave unmentioned insert include name ibid quoting webster new international dictionary ed thus taken literally omit limits statute scope situations specific receipts accruals income left computation gross income inflate basis however omit specific item even profit finding latter interpretation language plausibl also noted language unambiguous colony examined various congressional reports discussing relevant statutory language found reports persuasive indications congress merely mind failures report particular income receipts accruals intend extended limitation apply whenever gross income understated history said shows congress intended exception usual statute limitations restricted type situation already described situation include overstatements basis wrote congress enacting provision manifested broader purpose give commissioner additional two three years investigate tax returns cases taxpayer omission report taxable item commissioner special disadvantage return face provides clue existence omitted item hen overstatement basis issue understatement tax arises error reporting item disclosed face return commissioner disadvantage whether error one affecting income one overstated deductions affecting parts return ibid emphasis added finally noted congress recently enacted internal revenue code observed conclusion reach harmony unambiguous language provision relevant present case iii view colony determines outcome case provision us reenactment provision colony interpreted operative language identical difficult perhaps impossible give language different interpretation without effectively overruling colony course action basic principles stare decisis wisely counsel us take john sand gravel tare decisis respect statutory interpretation special force congress remains free alter done internal quotation marks omitted patterson mclean credit union government effort convince us interpret operative language us differently points differences nearby parts code suggests differences counsel favor different interpretation one adopted colony example government points new provision says case trade business term income means total amounts received accrued sale goods services amounts required shown return prior diminution cost sales services section basic phrase omi ssion gross income apply overstatements basis colony held need clause leads result specific subset cases government adds later paragraph referring gifts estates speak taxpayer omits items includible gross estate see emphasis added speaking items imply omission amount covers omission individual items indeed includes overstatements basis diminish amount profit reported gross income view points fragile bear significant argumentative weight government seeks place upon example least one plausible reason congress might added clause nothing desire change meaning general rule rather congress wrote code prior colony yet know interpret provision operative language least one lower decided provision apply overstatements cost goods business later sold see uptegrove lumber commissioner see reis commissioner congress well wanted ensure come may uptegrove interpretation remain law trade business issue interpretation leave clause without work trw andrews noting canon statutes read avoid making provision superfluous void insignificant internal quotation marks omitted provision also explains calculate denominator purposes determining whether conceded omission amounts gross income example tells us merchant fails include revenue sold goods met test total revenue regardless cost paid merchant acquire goods without clause general statutory definition gross income requires subtracting cost sales price see definition gross income calculation take total revenue sales minus cost sales say revenue thus amount gross income clause work respect omissions gross income irrespective interpretation regarding overstatements basis government argument subsection use word item instead amount yet weaker colony addressed similar argument word amount wrote commissioner draftsman use word instead example suggests concentration quantitative aspect error whether gross income understated much recognizing commissioner logic rejected argument significance word amount insufficient prove commissioner conclusion addition word item different subsection similarly fails exert interpretive force sufficiently strong affect conclusion word appearance subsection concede new rely case us solitary word change different subsection like hoping new batboy change outcome world series iv finally government points treasury regulation promulgated final form december see cfr regulation relevant departs colony interprets operative language statute government favor regulation says understated amount gross income resulting overstatement unrecovered cost basis constitutes omission gross income iii government view new regulation effect overturns colony interpretation statute government points treasury regulation constitutes agency construction statute administers chevron natural resources defense council see also mayo foundation medical ed research applying chevron tax context written prior judicial construction statute trumps agency construction otherwise entitled chevron deference prior decision holds construction follows unambiguous terms statute national cable telecommunications assn brand internet services emphasis added government notes colony wrote said language unambiguous hence government concludes colony govern outcome case question rather whether agency construction permissible construction statute chevron supra since government argues regulation embodies reasonable hence permissible construction statute government believes must win accept argument view colony already interpreted statute longer different construction consistent colony available adoption agency fatal flaw government contrary argument overlooks reason brand held prior judicial construction unless reflecting unambiguous statute trump different agency construction statute reveals reason points agencies courts fill statutory gaps ibid fact statute unambiguous means gap agency fill thus room agency discretion stating sought encapsulate earlier opinions including chevron made clear opinions identify underlying interpretive problem deciding whether particular statute effect delegates agency power fill gap thereby implicitly taking power void reasonable interpretation thus chevron said congress explicitly left gap agency fill express delegation authority agency elucidate specific provision statute regulation sometimes legislative delegation agency particular question implicit rather explicit either instance may substitute construction statutory provision reasonable interpretation made administrator agency see also mead smiley citibank south dakota ins morton ruiz chevron later cases find unambiguous language clear sign congress delegate authority agency find ambiguous language least presumptive indication congress delegate authority thus chevron wrote statute silence ambiguity particular issue means congress directly addressed precise question issue thus likely delegating power agency mead describing chevron explained congress may expressly delegated authority responsibility implement particular provision fill particular gap yet still apparent agency generally conferred authority statutory circumstances congress expect agency able speak force law addresses ambiguity statute fills space enacted law even one congress actually intent particular result internal quotation marks omitted chevron added employing traditional tools statutory construction ascertains congress intention precise question issue intention law must given effect emphasis added government points colony stated statutory language issue unambiguous decided case nearly years decided chevron reason believe linguistic ambiguity noted colony reflects conclusion congress delegated power agency time every reason believe thought congress directly spoken question hand thus left gap agency fill chevron supra one thing said taxpayer better side textual argument colony another examination legislative history led believe congress decided question definitively leaving room agency reach contrary result found history persuasive indications congress intended overstatements basis fall outside statute scope said satisfied congress intended exception restricted type situation already described thought commissioner interpretation interpretation advanced create patent incongruity tax law reached conclusion despite fact years leading colony commissioner consistently advocated opposite circuit courts see uptegrove reis goodenow commisioner american liberty oil commissioner cf slaff commisioner davis hightower thus aware rejecting expert opinion commissioner internal revenue finally completing analysis colony found interpretation code harmony unambiguous language code minimum suggests saw nothing code inconsistent conclusion may judges today use methods determine whether congress left gap fill beside point question whether colony concluded statute left gap view opinion written justice harlan makes clear given principles stare decisis must follow interpretation gap fill government regulation change colony interpretation statute agree taxpayer overstatements basis resulting understatement gross income trigger extended limitations period appeals reached conclusion see judgment affirmed ordered appendix reproduce applicable sections two relevant versions code section amended reorganized see hiring incentives restore employment act stat parties agree amendments affect case therefore referred reproduce section appears edition code title ed period limitation upon assessment collection general rule amount income taxes imposed chapter shall assessed within three years return filed proceeding without assessment collection taxes shall begun expiration period omission gross income taxpayer omits gross income amount properly includible therein excess per centum amount gross income stated return tax may assessed proceeding collection tax may begun without assessment time within years return filed title ed limitations assessment collection general rule except otherwise provided section amount tax imposed title shall assessed within years return filed whether return filed date prescribed tax payable stamp time tax became due expiration years date part tax paid proceeding without assessment collection tax shall begun expiration period substantial omission items except otherwise provided subsection income taxes case tax imposed subtitle general rule taxpayer omits gross income amount properly includible therein excess percent amount gross income stated return tax may assessed proceeding collection tax may begun without assessment time within years return filed purposes subparagraph case trade business term income means total amounts received accrued sale goods services amounts required shown return prior diminution cost sales services ii determining amount omitted gross income shall taken account amount omitted gross income stated return amount disclosed return statement attached return manner adequate apprise secretary nature amount item estate gift taxes case return estate tax chapter return gift tax chapter taxpayer omits gross estate total amount gifts made period return filed items includible gross estate total gifts case may exceed amount percent gross estate stated return total amount gifts stated return tax may assessed proceeding collection tax may begun without assessment time within years return filed opinion scalia petitioner home concrete supply llc et al writ certiorari appeals fourth circuit april justice scalia concurring part concurring judgment reasonable think deny precedential effect colony commissioner overrule holding obviously contrary later law agency resolutions ambiguities accorded deference justifiable taxpayer reliance take course neither opinion says colony determines outcome case ante end matter plurality however goes address government argument treasury regulation effectively overturned colony see cfr view decided upon de novo construction statute longer different construction consistent holding available adoption agency national cable telecommunications assn brand internet services scalia dissenting citation internal quotation marks omitted view course carry day brand government quite reasonably relies brand majority innovative pronouncement prior judicial construction statute trumps agency construction otherwise entitled chevron deference prior decision holds construction follows unambiguous terms statute cases decided inkling must utter magic words ambiguous unambiguous order poof expand abridge executive power poof enable disable administrative contradiction indeed unaware even utility much less necessity making determination cases decided opinion made step determination ambiguity vel non customary though hardly part analysis many earlier cases therefore incredibly difficult determine whether decision purported giving meaning ambiguous rather unambiguous statute thus one thought brand majority breathe sigh relief present case involving opinion mirabile dictu makes inescapably clear thought statute ambiguous said language unambiguous colony supra emphasis added today plurality opinion explains colony said taxpayer better side textual argument ante emphasis added brand requires foreclose administrative revision decisions permissible reading statute thus decided stand colony stand brand well plurality found order reach decision treasury department current interpretation unreasonable instead brand require however plurality manages sustain justifiable reliance taxpayers revising yet meaning chevron revising yet direction create confusion uncertainty see mead scalia dissenting bressman mead muddled judicial review agency action vand rev course doubt regard internal revenue code treasury department satisfies mead requirement indication congress delegated authority agency generally make rules carrying force law given chevron deference treasury regulation see mayo foundation medical ed research slip order evade brand yet reaffirm colony plurality add yet another story ugly improbable structure law administrative review become trigger brand power authorized agency give content ambiguous text determination language ambiguous alone suffice must addition found congress wanted particular ambiguity question resolved agency today plurality opinion finds reason believe linguistic ambiguity noted colony reflects conclusion congress delegated power agency ante notion seemingly finding ambiguity accompanied finding agency authority resolve ambiguity premise false cases conclude congress wanted particular ambiguity resolved agency simply legal effect ambiguity legal effect obtain whenever language fact colony found ambiguous plurality feel give effect colony determination ambiguity know era importance determination empower agency effect revise determination statutory meaning suggested earlier ignorance cases shared really matter whether resolving ambiguity setting forth statute clear meaning opinion might might advert point course analysis either way interpretation statute law small number cases today plurality opinion exile land uncertainty perhaps sensing fragility new approach plurality opinion pivots la mode vernacular focusing whether colony concluded authority focusing whether colony concluded gap filled question whether colony concluded statute left gap view opinion makes clear ante plurality know justice harlan opinion said taxpayer better side textual argument found legislative history indicated congress intended overstatements basis fall outside statute scope concluded commissioner interpretation create patent incongruity tax law found interpretation harmony unambiguous language code ante internal quotation marks omitted sorts arguments courts always use resolving ambiguities prove ambiguity existed unless one believes ambiguity resolved ambiguity never existed first place colony said unambiguously text ambiguous end matter unless one wants simply deny stare decisis effect colony decision rather making jurisprudence curiouser curiouser abandon opinion produces contortions brand join judgment announced indisputable colony resolved construction statutory language issue construction must therefore control join opinion except part must add word peroration dissent asserts ur legal system presumes continuing dialogue among three branches government questions statutory interpretation application constructive discourse ations instructive exchanges foreclosed insistence adhering earlier interpretations statute even light new relevant statutory amendments post opinion kennedy passage reminiscent professor davis vision administrative procedure developed partnership legislators judges working partners produce better law legislators alone possibly produce romantic image obliterated vermont yankee nuclear power natural resources defense council held congress prescribes obey discretion add administrative procedures congress created seems dissent vision troika partnership similar mirage discourse conversation exchange dissent perceives peculiarly congress prescribes congress prescription ambiguous executive within scope ambiguity clarify prescription product constitutional courts obey hardly think amounts discourse congress allow brand decision executive change prescription render prior holding irrelevant needed system work congress executive private parties subject dispositions able predict meaning courts give instructions goal obstructed judicially established meaning technical legal term used specific context overturned basis statutory indications feeble asserted kennedy dissenting petitioner home concrete supply llc et al writ certiorari appeals fourth circuit april justice kennedy justice ginsburg justice sotomayor justice kagan join dissenting case involves provision internal revenue code establishing extended statute limitations tax assessment cases substantial income omitted tax return see supp iv treasury department determined taxpayers omit income section fail report sale property also overstate basis property sold see treas reg cfr question whether otherwise reasonable interpretation foreclosed contrary reading earlier version statute colony commissioner colony need decide whether meaning provision changed congress part revision tax code although main text statute remained congress added new provisions leading permissible conclusion different meaning going forward colony decision reserved judgment issue view amended statute leaves room department reading summary reasons concluding department interpretation permissible respectful dissent follows statute issue colony ed enacted part internal revenue code provided longer period limitations government assessed income taxes taxpayer omit ted gross income amount excess per centum amount gross income stated return disagreement courts meaning provision statute first enacted tax appeals sixth circuit held overstatement basis constituted omission gross income trigger extended limitations period see reis commissioner american liberty oil commissioner appeals third circuit came opposite conclusion case corporation misreported income inflating cost goods sold inventory see uptegrove lumber commissioner third circuit view omission taxpayer left entire item gain computation gross income colony decision issued resolved dispute government acknowledging said language unambiguous relying large part legislative history code concluded mere overstatement basis constitute omission gross income government prevail instant case regulation question must proper implementation language considered colony statutory interpretation issue resolved colony decision deemed controlling without first considering inferences drawn added statutory text additional language part statute governed taxpayer liability colony consider case congress revised internal revenue code several years colony decided tax years question case although interpretation adopted colony proper beginning point interpretation revised statute end central language new provision remained old longer period limitations still applicable taxpayer omit ted gross income amount excess per cent amount gross income stated return colony however left open whether congress nonetheless manifested intention clarify change code revisions course provide direct response colony yet decided indications whatever earlier version statute meant congress expected overstatement basis considered omission gross income general rule going forward example new law created special exception businesses defining gross income total amounts received accrued sale goods services without factoring cost sales services ed supp iv purpose provision perhaps motivated facts third circuit uptegrove decision seems ensure extended statute limitations activated business overstatement cost goods sold important work unique complexities involved calculating inventory costs see whittington pany principles auditing assurance services ed audit inventories presents auditors significant risk often represent substantial portion current assets numerous valuation methods used inventories valuation inventories directly affects cost goods sold determination inventory quality condition value inherently complex see also internal revenue service publication accounting periods methods rev mar discussing methods identifying cost items inventory congress sought fit make clear errors kinds calculations extend limitations period colony might classified special business inventory case unlike taxpayers taxpayer colony claimed business income sale goods though goods held sale real estate lots see intermountain ins serv vail commissioner cadc tatel colony described taxpayer trade business income sale goods services falling within clause scope subsection applied turn observed construction statute favor taxpayer harmony unambiguous language newly enacted clause new provision noted ensured extended limitations period cover overstated costs goods sold revised statute special treatment costs suggests overstatements basis cases effect extending limitations period also significant statute continued address omission substantial amount included gross income round revisions tax code congress established extended limitations period certain cases items omitted estate gift tax return least evidence term used time mak clear extended limitations period apply merely differences taxpayer government valuation property staff joint committee internal revenue taxation summary new provisions internal revenue code comm print congress decision use term items achieve result reenacted statutory provision issue presumed purposeful see russello consideration casts doubt premise new version statute supp iv necessarily meaning predecessor ii instant case concludes statutory changes fragile bear significant argumentative weight government seeks place upon ante context changes meaningful colony made clear text earlier version statute described unambiguous ultimately concluded overstatement basis omission gross income see statutory revisions considered colony may compel opposite conclusion new statute strongly favor result room treasury department interpret new provision manner see chevron natural resources defense council earlier case unrelated controversy implicating internal revenue code held judicial construction ambiguous statute foreclose agency later inconsistent interpretation provision national cable telecommunications assn brand internet services judicial precedent holding statute unambiguously forecloses agency interpretation therefore contains gap agency fill displaces conflicting agency construction general rule recognizes filling gaps left statute involves difficult policy choices agencies better equipped make courts opportunity decide whether analysis different agency sought interpret ambiguous statute way inconsistent earlier reading law see stevens concurring issues implicated colony interpret phrase must interpreted case language predecessor statute however congress added new language view controls analysis instruct reach different outcome today treasury department regulations promulgated light statutory revisions issue serious difficulty insisting today ambiguous provision must continue read way even reenacted additional language suggesting congress permit different interpretation agencies responsibility expertise necessary administer ongoing regulatory schemes latitude discretion implement interpretation provisions reenacted new statutory framework especially new language enacted congress seems favor interpretation issue approach taken instead forecloses later interpretations law changed relevant ways cf mead scalia dissenting worst majority approach lead ossification large portions statutory law chevron applies statutory ambiguities remain subject agency ongoing clarification goes far respectful view constricting congress ability leave agencies charge filling statutory gaps legal system presumes continuing dialogue among three branches government questions statutory interpretation application see blakely washington kennedy dissenting constant constructive discourse courts legislatures integral admirable part constitutional design mistretta principle separation powers anticipates coordinate branches converse matters vital common interest cases congress set general principle administered detail agency exercise discretion agency may proper position evaluate best means implementing statute practical application agency exceeds authority course courts must invalidate regulation agency interpretations lead unjust unfair consequences corrected much like disfavored judicial interpretations congressional action instructive foreclosed insistence adhering earlier interpretations statute even light new relevant statutory amendments courts instead open agency adoption different interpretation congress given new instruction amended statute circumstances treasury department authority adopt reasonable interpretation new tax provision issue see mayo foundation medical ed research slip also conclusion reached opinions issued several cases courts appeals intermountain reaching conclusion colony never purported interpret new provision new provision gross income text least ambiguous best read include overstatements basis neither section structure history context removes ambiguity department clarification ambiguous statute applicable taxpayers upset legitimate settled expectations given statutory changes described taxpayers reason question whether colony holding extended revised see cc western operations commissioner whether colony main holding carries section least doubtful worked change law instead interpreted statutory provision without established meaning department regulation impermissible retroactive effect cf smiley citibank south dakota rejecting retroactivity argument manhattan equipment commissioner controls case reasons respect dissent footnotes step never essential part chevron analysis whether particular statute ambiguous makes difference interpretation adopted agency clearly reasonable waste time conduct inquiry see entergy riverkeeper true agency interpretation clearly beyond scope conceivable ambiguity matter whether word yellow ambiguous agency interpreted mean purple see stephenson vermeule chevron one step rev davis administrative law treatise