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Petitioner posits that the Regulation's dual section 6511
requirement precludes taxpayers from maximizing their allowable
FSC commissions via amended returns, in contravention of section
925(a) and congressional intent. In that connection, petitioner
argues that the dual section 6511 requirement improperly adds to
section 925(a) a limitation not envisioned by Congress. To
bolster its position, petitioner quotes in part the Senate
Finance Committee report accompanying the FSC legislation:
Under the administrative pricing rules, the transfer
price from the related supplier to the FSC may be
computed after the FSC sells the goods to a customer.
Furthermore, the FSC and its related supplier may make
adjustments upwards or downwards following the close of
the taxable year in which the FSC sells the goods. [S.
Prt. 98-169 (Vol. 1), supra at 649.]
Petitioner reads the statute and legislative history too
broadly. Section 925(a) itself is silent on the issue of
redeterminations of FSC commission expenses. Cf. Bankers Life &
Cas. Co. v. United States, ___ F.3d ___, ___ (7th Cir., Apr. 17,
1998). Moreover, the legislative history excerpted above does
not mention redeterminations via amended returns--it simply
endorses adjustments to FSC expenses after the relevant tax year
has closed. Cf. E.I. du Pont de Nemours & Co. v. Commissioner,
41 F.3d 130, 137 (3d Cir. 1994), affg. 102 T.C. 1 (1994).
Contrary to petitioner's assertions, the Regulation does not
conflict with the language of the underlying statute, nor is it
inconsistent with legislative intent. See CWT Farms, Inc. v.
Commissioner, supra at 1063-1064. The extent to which Congress
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