Venture Funding, Ltd. - Page 9

                                        - 9 -                                         
          reduction of the taxpayer's income tax").  See generally Bittker            
          & McMahon, Federal Income Taxation of Individuals, par. 28.2,               
          at 28-2 (2d ed. 1995) (the word "recognized" means "taken into              
          account in computing taxable income").3                                     
               Neither party references the legislative history of section            
          83(h), and we do not resort to it to alter the plain meaning of             
          the words used in the statute.  A statute speaks for itself, and            
          its legislative history is sought to clarify the text only when             
          the meaning of the words therein is "inescapably ambiguous".                
          Garcia v. United States, 469 U.S. 70, 76 n.3 (1984); see also               
          Ex parte Collett, 337 U.S. 55 (1949).  When read in view of the             

               3 We also note that the drafters of section 83 knew the                
          difference between the suffixes "-able" and "-ible", on the one             
          hand, and "-ed" on the other.  Section 83 includes both                     
          "transferable" and "transferred" in many places, and it is clear            
          that those words are not interchangeable.  Moreover, sec. 83 was            
          added to the Code by sec. 321(a) of the Tax Reform Act of 1969              
          (the Act), Pub. L. 91-172, 83 Stat. 588, and sec. 321(b)(3) of              
          the Act, 83 Stat. 591, which provides similar but not identical             
          rules for nonexempt trusts and nonqualified annuities, amended              
          sec. 404(a)(5) to provide for deductibility "in the taxable year            
          in which an amount attributable to the contribution is includible           
          in the gross income".  (Emphasis added.)  When we find, as we do            
          here, that different words are used in the same section of the              
          same act, we do not impute to Congress the intent to express the            
          same meaning through the different words.  See United States v.             
          Olympic Radio & Television, 349 U.S. 232 (1955); Estate of                  
          Cuddihy v. Commissioner, 32 T.C. 1171, 1176 (1959); Root Glass              
          Co. v. Commissioner, 1 T.C. 475, 477 (1943).  "[L]egal documents            
          are for the most part nonemotive, [and] it is presumed that the             
          author's language has been used, not for its artistic or                    
          emotional effect, but for its ability to convey ideas.                      
          Accordingly, it is presumed that the author has not varied his              
          terminology unless he has changed his meaning, and has not                  
          changed his meaning unless he has varied his terminology".                  
          Zuanich v. Commissioner, 77 T.C. 428, 443 n.26 (1981) (quoting R.           
          Dickerson, The Interpretation and Application of Statutes 224               
          (1975)).                                                                    



Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  16  17  18  19  20  Next

Last modified: May 25, 2011