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* * * * * * *
(D) Application of subsection (b)(3).--In
the case of an activity described in subparagraph
(A), subsection (b)(3) shall apply only to the
extent provided in regulations prescribed by the
Secretary. [Emphasis added.]
The activity of the taxpayer was not one of the specified
types of transactions that fell within the scope of an activity
described in section 465(c)(1). No regulations had been issued
under section 465(c)(3)(D). We held that the issuance of the
regulations was a precondition to a determination whether the at-
risk rules applied to the taxpayer's activity. In so doing, we
specifically characterized the "only to the extent" language of
the statute as unambiguous and therefore controlling. Alexander
v. Commissioner, supra at 473; see H. Enters. Intl., Inc. v.
Commissioner, 105 T.C. 71, 82 (1995).
Respondent contends that this foundation of our opinion
distinguishes Alexander from the instant case and relies on
Occidental Petroleum Corp. v. Commissioner, 82 T.C. 819 (1984),
which dealt with the effect on the alternative minimum tax of the
absence of regulations under section 58(h) which provided:
SEC. 58(h) Regulations To Include Tax Benefit
Rule.--The Secretary shall prescribe regulations under
which items of tax preference shall be properly
adjusted where the tax treatment giving rise to such
items will not result in the reduction of the
taxpayer's tax under this subtitle for any taxable
years.
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