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regulations.” See also Trans City Life Ins. Co. v. Commissioner,
106 T.C. 274, 299-300 (1996); Estate of Neumann v. Commissioner,
106 T.C. 216 (1996); H Enters. Intl., Inc. v. Commissioner, 105
T.C. 71, 81-85 (1995). We can find no reason that would justify
or reconcile treating section 469(l)(1), which was at issue in
the Schwalbach case, as self-executing and treating section
469(l)(2) as not being self-executing.
We have held language similar to that in section 469(l)(2)
to be self-executing. For example, in International Multifoods
Corp. v. Commissioner, 108 T.C. 579, 584 (1997), the taxpayer
sourced a loss in accordance with the statutory rule of section
865(a). Despite a statutory provision that “The Secretary shall
prescribe such regulations as may be necessary or appropriate to
carry out the purpose of this section, including regulations * *
* relating to the treatment of losses from sales of personal
property,” no loss sourcing regulations were issued. The
Commissioner argued that nothing in the statute required the
promulgation of any “particular rule” with respect to the
allocation of losses on the disposition of personal property. In
rejecting that argument, we found that Congress had intended to
change the rules regarding the sourcing of losses and held that
the Commissioner could not hide behind the failure to promulgate
regulations. Under those circumstances, we stated:
When Congress directs that regulations be
promulgated to carry out a statutory purpose, the fact
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