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services for ratemaking purposes "shall be includible in the
gross income of such taxpayer".5 (Emphasis added.) Obviously,
Congress has used the terms "includes", "included", and
"includible" interchangeably.
The regulations regarding gross income also use variations
of the word "include" to describe items that constitute gross
income. Section 1.61-1(a), Income Tax Regs., provides that
"Gross income includes income realized in any form, whether in
money, property, or services." That regulation goes on to
provide:
(1) For examples of items specifically included in
gross income, see part II (section 71 and following),
subchapter B, chapter 1 of the Code.
(2) For examples of items specifically excluded
from gross income, see part III (section 101 and
following), subchapter B, chapter 1 of the Code.
(3) For general rules as to the taxable year for
which an item is to be included in gross income, see
section 451 and the regulations thereunder. [Sec.
1.61-1(b), Income Tax Regs.]
5Congress has used the phrase "shall be includible in gross
income" as a legal mandate in the following Code sections:
101(f)(3)(B)(ii); 415(b)(10)(C)(ii); 454(c); 457(a), (g);
468A(c)(1); 529(c)(3)(A); 530(d)(1); 704(e)(2); 7702(f)(1)(C);
7702A(e)(1)(C); and 7702B(b)(2)(C), (d)(1). Further, Congress
has used the phrase "is includible in the gross income" as a
legal mandate in sec. 72(m)(3)(B), and Congress has used the
phrase "are includible in gross income" as a legal mandate in
sec. 803(a)(3).
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