International Multifoods Corporation and Affiliated Companies - Page 14

                                       - 14 -                                         
               General Explanation of the Tax Reform Act of 1986, at                  
               922-923 (J. Comm. Print 1987) (General Explanation).]                  

               When Congress directs that regulations be promulgated to               
          carry out a statutory purpose, the fact that regulations are not            
          forthcoming cannot be a basis for thwarting the legislative                 
          objective.  It is well established that the absence of                      
          regulations is not an acceptable basis for refusing to apply the            
          substantive provisions of a section of the Internal Revenue Code.           
          See, e.g., Estate of Neumann v. Commissioner, 106 T.C. 216, 221             
          (1996); H Enters. Intl., Inc. v. Commissioner, 105 T.C. 71, 82              
          (1995); First Chicago Corp. v. Commissioner, 88 T.C. 663, 669               
          (1987), affd. 842 F.2d 180 (7th Cir. 1988); Occidental Petroleum            
          Corp. v. Commissioner, 82 T.C. 819, 829 (1984).  In Estate of               
          Neumann v. Commissioner, supra at 221, for instance, we                     
          determined that regulations were not a prerequisite to applying             
          the generation-skipping tax to certain transfers when the                   
          relevant statutory language (sec. 7701(f)) provided:  "'The                 
          Secretary shall prescribe such regulations as may be necessary or           
          appropriate to prevent the avoidance of those provisions of this            
          title'".  We concluded that Congress had not given the Secretary            
          the power to determine section 2663's application; i.e., whether            
          the general rule of section 2663 applied to cases such as the               
          taxpayer's.  Rather, we explained that Congress had simply                  
          authorized the Secretary to provide rules on how the section                
          should apply.  Id.                                                          

Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  16  17  18  Next

Last modified: May 25, 2011