International Multifoods Corporation and Affiliated Companies - Page 15

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               In Occidental Petroleum Corp. v. Commissioner, supra at 829,           
          we considered the effect on the alternative minimum tax of the              
          absence of regulations under section 58(h).6  We stated:  "the              
          failure to promulgate the required regulations can hardly render            
          the new provisions of section 58(h) inoperative.  We must                   
          therefore do the best we can with these new provisions.                     
          Certainly we cannot ignore them."  Id.  We held that the absence            
          of regulations did not preclude proper adjustments in respect of            
          the tax benefit rule, and we proceeded to determine those                   
          adjustments in that case.  We reasoned that Congress had intended           
          section 58(h) to provide a basis for how (as opposed to whether)            
          the alternative minimum tax should be applied in order to take              
          into account the tax benefit rule.  See Estate of Neumann v.                
          Commissioner, supra at 220.                                                 
               On brief, respondent argues that our decision in Occidental            
          Petroleum Corp. v. Commissioner, supra, is distinguishable for              
          several reasons.  First, respondent contends that section 58(h)             
          explicitly provided that a particular rule (i.e., the tax benefit           
          rule) was to be adopted in the regulations, whereas "section                
          865(j) merely provides that regulations are to be promulgated               
          with respect to a particular subject matter but does not state or           
          imply what rules are to be adopted with respect thereto."                   

               6Sec. 58(h) provided that "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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