Joseph D. Specking, et al. - Page 35




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          Commissioner, 92 T.C. 1204, 1211-1213 (1989); Estate of Gunland             
          v. Commissioner, 88 T.C. 1453, 1457 (1987).  Included in those              
          legislative regulations are the definition of “tax home” quoted             
          supra note 19 and the definitions of “United States” and “foreign           
          country” set forth in section 1.911-2(g) and (h), Income Tax                
          Regs., and quoted supra p. 29.                                              
               The regulations under section 911 promulgated in 1985 take             
          priority over section 1.931-1(b)(2), Income Tax Regs.,                      
          promulgated in 1960.  The regulations under section 911 are not             
          only later in time; they also are legislative regulations                   
          construing the very statute, i.e., section 911, that is in issue.           
          By contrast, section 1.931-1(b)(2), Income Tax Regs., interprets            
          old section 931, which ceased to apply to Johnston Island, and              
          thus to petitioners’ situation, for tax years beginning after               
          December 31, 1986.  Accordingly, section 1.931-1(b)(2), Income              
          Tax Regs., is obsolete to the extent it suggests a connection               
          between sections 911 and 931.  Thus, section 1.931-1(b)(2),                 
          Income Tax Regs., cannot operate to allow petitioners an                    
          exclusion from income under section 911 for any of the                      
          compensation they earned on Johnston Island during the years in             
          issue.                                                                      



               21(...continued)                                                       
          Secretary's general authority to promulgate regulations set forth           
          in section 7805.  Faltesek v. Commissioner, 92 T.C. 1204, 1212              
          (1989).                                                                     





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