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regulations are silent as to whether the activities of a C
corporation are attributable to the corporation's shareholders.
Contrary to petitioners' assertion, the silence of the proposed
regulations on this subject cannot be equated to providing
petitioners with relief from the attribution rules set forth in the
final regulations. Simply put, the proposed regulations' silence
means nothing, not something. Moreover, the rule of nonattribution
set forth in the temporary regulations issued in 1989 is not
relevant because the relief afforded petitioners under the
transitional rules is based solely on the rules set forth in the
proposed regulations of 1992, not in the temporary regulations.
We are mindful that:
(1) The 1992 proposed regulations eliminated the specific
statement found in section 1.469-4T(b)(2)(ii)(B), Temporary Income
Tax Regs., 54 Fed. Reg. 20527, 20543 (May 12, 1989), T.D. 8253,
1989-1 C.B. 121, 139 (the second set of temporary regulations),
which stated:
For purposes of applying section 469 and the
regulations thereunder, a taxpayer's activities do not
include operations that the taxpayer conducts through one
or more entities (other than passthrough entities).
(2) The preamble to the 1992 proposed regulations states:
This document proposes to replace section
1.469-4T with a new section 1.469-4, which
will provide a modified definition of the term
activity.
and
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