- 18 -
(1947); Old Colony R.R. Co. v. Commissioner, 284 U.S. 552, 560
(1932). Although Congress instructed the Commissioner to
prescribe regulations under section 469 which would specify what
constitutes an activity, see sec. 469(l)(1), this does not mean
that section 469 or the regulations thereunder require the
Commissioner to define the word "activity" in order for the
statutory and regulatory provisions to be effective. We find
nothing in the statutory text, or in its legislative history,
that conditions the effectiveness of section 469 on the issuance
of regulations. See Trans City Life Ins. Co. v. Commissioner,
106 T.C. at 299-300; Estate of Neumann v. Commissioner, 106 T.C.
216 (1996); H Enters. Intl., Inc. v. Commissioner, 105 T.C. 71,
81-85 (1995).
As to petitioners' assertion concerning the new language
that appeared in section 1.469-4(a), Income Tax Regs., the change
in language from the proposed regulations was substantial; up
until the final regulations, the Commissioner had not publicly
taken the position that an individual's activities could include
activities conducted through a C corporation. The mere fact,
however, that the Commissioner adopted a new position in section
1.469-4(a), Income Tax Regs., does not necessarily mean that the
Commissioner was required to give another notice and allow
another comment period on that position. The Commissioner is not
required by the APA, supra, to include in proposed regulations
every precise rule that ultimately appears in the final
Page: Previous 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 NextLast modified: May 25, 2011