Opinion ID: 206582
Heading Depth: 2
Heading Rank: 3

Heading: Applying Chevron

Text: The Chevron analysis has two steps. First, we must determine if there is an ambiguity in the statute such that an agency has room to interpret. Second, we must determine whether the agency's action is a reasonable interpretation of Congress's intent. Chevron, 467 U.S. at 842-43, 104 S.Ct. 2778.
Where a court, applying the traditional tools of statutory construction, is unable to identify a clear intent by Congress as to how a given question should be resolved, that opens the door to an agency filling in the gap by regulation. Chevron, 467 U.S. at 843, 104 S.Ct. 2778. The search for Congress's intent begins with the plain statutory text. Id. at 848-51, 104 S.Ct. 2778; Nat'l Cable & Telecomm. Ass'n v. Brand X Internet Servs. (hereinafter Brand X), 545 U.S. 967, 986, 125 S.Ct. 2688, 162 L.Ed.2d 820 (2005) (At the first step, we ask whether the statute's plain terms directly address the precise question at issue.) (quotation marks omitted); Torrington Co. v. United States, 82 F.3d 1039, 1044 (Fed.Cir.1996). If, even after consulting the plain text, there is still some question as to Congress's intent concerning the given question, we turn to the traditional tools of statutory construction, e.g., legislative history, to see if they show a clear intent that is unclear from the text alone. Chevron, 467 U.S. at 842-43, 104 S.Ct. 2778; see also Torrington, 82 F.3d at 1044. The Tax Code's provision for an extended limitations period when a return reflects a [s]ubstantial omission of items reads: (e) Substantial omission of items.Except as otherwise provided in subsection(c) (1) Income taxes.In the case of any tax imposed by subtitle A (A) General rule.If the 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, the tax may be assessed, or a proceeding in court for the collection of such tax may be begun without assessment, at any time within 6 years after the return was filed. For purposes of this subparagraph (i) In the case of a trade or business, the term gross income means the total of the amounts received or accrued from the sale of goods or services (if such amounts are required to be shown on the return) prior to diminution by the cost of such sales or services; and (ii) In determining the amount omitted from gross income, there shall not be taken into account any amount which is omitted from gross income stated in the return if such amount is disclosed in the return, or in a statement attached to the return, in a manner adequate to apprise the Secretary of the nature and amount of such item.