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Tax Regs. (T.D. 6258, 1957-2 C.B. 368, 404-405), old section
1.874-1, Income Tax Regs.,4 provided that if no return was filed
the district director (or, if applicable, the Director of
International Operations) shall (1) cause a return of income
to be made, (2) include therein the income described in sec.
1.871-7 of that individual * * *, without allowance for
deductions * * *.
Therefore, for petitioner's taxable years 1987, 1988, and 1989 we
must decide whether section 874(a) implicitly created a timely
filing requirement. Furthermore, since the validity of the new
regulation is called into question, this analysis will also be
relevant for the taxable years 1990 and 1991.
Section 874(a) has its genesis, Revenue Act of 1918, ch. 18,
sec. 217, 40 Stat. 1057, 1069. Section 217 was reenacted
throughout the years.5 When carried forward into the Internal
Revenue Code of 1954 as section 874, section 874 was "identical
in substance with sections 215 and 216, 1939 Code." H. Rept.
1337, 83d Cong., 2d Sess. A245 (1954). A parallel provision,
dealing with foreign corporations, was enacted as section 233 of
the Revenue Act of 1928, ch. 852, 45 Stat. 849. This provision
4 Old sec. 1.874-1, Income Tax Regs., had its origins in
Regs. 45, art. 311, promulgated under the Revenue Act of 1918,
ch. 18, 40 Stat. 1057. That section was repromulgated throughout
the years. See, e.g., Regs. 65, art. 331; Regs. 69, art. 331;
Regs. 74, art. 1071; Regs. 77, art. 1071; sec. 39.215, Regs. 118.
5 See, e.g., Revenue Act of 1924, ch. 234, sec. 217(g), 43
Stat. 275; Revenue Act of 1926, ch. 27, sec. 217(g), 44 Stat. 32;
Revenue Act of 1928, ch. 852, sec. 215(a), 45 Stat. 848; Revenue
Act of 1932, ch. 208, sec. 215(a), 47 Stat. 229; Internal Revenue
Code of 1939, ch. 2, sec. 215, 53 Stat. 77.
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