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continues to disagree with the pre-TRA judicial view that an
individual engaged in a trade or business may deduct from gross
income the amount of interest on a Federal income tax liability
that is attributable to his or her business. Thus, the
Commissioner prescribed her position into section
1.163-9T(b)(2)(i)(A), Temporary Income Tax Regs., under the
guise of the TRA's amendments to section 163. Section
1.163-9T(b)(2)(i)(A), Temporary Income Tax Regs., is inconsistent
with section 163(h). The nondeductibility of personal interest
does not apply to interest on a Federal income tax liability that
is properly allocable to a trade or business. Sec. 163(h)(2)(A).
Interest on a Federal income tax liability that is properly
allocable to a trade or business is deductible under section
162(a) if the incurrence of the interest is ordinary and
necessary to the trade or business. If the Congress had intended
to disallow any deduction for deficiency interest that was an
ordinary and necessary business expense under section 162(a), the
Congress would have said so. Instead, the Congress clearly
stated that personal interest does not include "interest paid or
accrued on indebtedness properly allocable to a trade or business
(other than the trade or business of performing services as an
employee)". Sec. 165(h)(2)(A). Because the Commissioner's
prescription of section 1.163-9T(b)(2)(i)(A), Temporary Income
Tax Regs., is inconsistent with the statute (and is not within
the "legislature's revealed design" for the TRA's amendments to
section 163, Nationsbank v. Variable Annuity Life Ins. Co., 513
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