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methodology except in the context of the contention that such
regulations were necessary to the imposition of the GST tax and
that therefore the use of that methodology constituted an
unjustified retroactive application of the regulations.
Thus, we are called upon to resolve the following question:
Are the regulations a necessary condition to determining
"whether" the GST tax applies, as petitioner contends, or do they
constitute only a means of arriving at "how" that tax, otherwise
imposed by the statute, should be determined, as respondent
contends.
In support of its position, petitioner relies heavily on
Alexander v. Commissioner, 95 T.C. 467 (1990), affd. without
published opinion sub nom. Stell v. Commissioner, 999 F.2d 544
(9th Cir. 1993). In that case, section 465(c)(1), as then in
effect, set forth specific types of transactions to which the at-
risk provisions applied (see 95 T.C. at 469 n.4) and then
provided in section 465(c)(3):
(3) Extension to other activities.--
(A) In general.--In the case of taxable
years beginning after December 31, 1978, this
section also applies to each activity--
(i) engaged in by the taxpayer in
carrying on a trade or business or for the
production of income, and
(ii) which is not described in
paragraph (1),
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