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Department of Transp., 38 F.3d 582, 589 (D.C. Cir. 1994); Small
Refiner Lead Phase-Down Task Force v. EPA, 705 F.2d at 547.
The purpose of notice and comment is not adequately served, on
the other hand, where interested persons could not reasonably
anticipate the final rules from the proposed rules. Natural
Resources Defense Council, Inc. v. EPA, 863 F.2d 1420, 1429
(9th Cir. 1988); see also American Water Works Association v.
EPA, 40 F.3d at 1275; Anne Arundel County v. EPA, 963 F.2d 412,
418 (D.C. Cir. 1992). Where the final rules deviate too sharply
from the proposed rules, notice is inadequate. AFL-CIO v.
Donovan, 757 F.2d 330, 338 (D.C. Cir. 1985); Small Refiner Lead
Phase-Down Task Force v. EPA, 705 F.2d at 547.
Our review of the evolution of section 1.469-4(a), Income
Tax Regs., leads us to conclude that the amendments contained
therein are in character with the original scheme for section 469
and the regulations thereunder and are a logical outgrowth of the
comments which were made on the two sets of proposed regulations.
The Commissioner offered affected persons the opportunity to
develop an evidentiary record on the promulgation of section
1.469-4(a), Income Tax Regs., by inviting them to comment
publicly on the substance of each set of the proposed
regulations. The first set of proposed regulations dealt
specifically with the attribution rule stating that a
corporation's activities will not be attributed to an individual
who conducts the activity through the corporation. Although the
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