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require an employer to issue an employee a Form W-2 or Form 1099
as a prerequisite to a deduction under section 83(h). Petitioner
alleges that the income from the transfer of the Endotronics
stock was includable in petitioner's employees' incomes for the
year of transfer, which is the statutory requirement for a
deduction under section 83(h), and respondent's regulatory
requirement that petitioner also issue Forms W-2 to its employees
to deduct the compensation under section 83(h) impermissibly adds
restrictions to a statute which are not there. Petitioner,
relying mainly on section 1.83-6(a)(3), Income Tax Regs., argues
that it may deduct the claimed amount in 1988 because that amount
is deductible in 1988 under petitioner's accrual method.
We disagree with petitioner that it may deduct the claimed
amount in 1988. We start our analysis with the statutory text,
construing the language as written by the legislators with
reference to the legislative history primarily to learn the
purpose of the statute and to resolve any ambiguity in the words
used in the text. Trans City Life Ins. Co. v. Commissioner,
106 T.C. 274, 299 (1996). Section 83, which was added to the
Code as section 321(a) of the Tax Reform Act of 1969, Pub. L.
91-172, 83 Stat. 588, reads in relevant part:
SEC. 83. PROPERTY TRANSFERRED IN CONNECTION
WITH PERFORMANCE OF SERVICES.
(a) General Rule.--If, in connection with the
performance of services, property is transferred to any
person other than the person for whom such services are
performed, the excess of--
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