- 26 -
Huntsberry v. Commissioner, 83 T.C. 742, 747-748 (1984). We may
use legislative history to clarify an ambiguous statute. City of
New York v. Commissioner, 103 T.C. 481, 489 (1994), affd. 70 F.3d
142 (D.C. Cir. 1995). Even where the statutory language appears
clear, we may seek out any reliable evidence as to legislative
purpose. Id.
The statute applies to a reporting corporation "If, at any
time during a taxable year," it has "transactions" with "related
parties". Sec. 6038A(a). We have already established that
petitioner was a "reporting corporation" that had "transactions"
with a "related party" during the year in issue. The phrase "If,
at any time during a taxable year" relates to the taxable year
that the reporting corporation has a transaction with a related
party. Likewise, section 6038A(e)(1) provides in part:
The rules of paragraph (3) [the noncompliance penalty]
shall apply to any transaction between the reporting
corporation and any related party who is a foreign
person unless such related party agrees (in such manner
and at such time as the Secretary shall prescribe) to
authorize the reporting corporation to act as such
related party's limited agent * * * [Emphasis added.]
Again, the relevant time period is when the transaction took
place. This interpretation is consistent with the intent of
Congress, as shown by legislative history. Congress intended for
the IRS to have access to the information necessary to determine
if related party transactions complied with section 482. The
relevant time period for establishing a taxpayer's status as a
reporting corporation is when the transaction(s) took place; the
Page: Previous 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 NextLast modified: May 25, 2011