Charles C. Allen, III and Barbara N. Allen, et al. - Page 23




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          relevant statutory provisions.  To be sure, the parties, but for              
          citations to the conferees’ understanding of the law that                     
          preceded the 1986 Act, have not even cited the Court one iota of              
          persuasive legislative history in support of their contentions.               
          The General Explanation of the 1986 Act, the source of the                    
          “legislative history” upon which the parties primarily rely to                
          support their assertions of legislative intent, is not part of                
          the statute’s legislative history.  See Estate of Hutchinson v.               
          Commissioner, 765 F.2d 665, 669-670 (7th Cir. 1985), affg.                    
          T.C. Memo. 1984-55; Condor Intl., Inc. v. Commissioner, 98 T.C.               
          203, 227 (1992).  See generally Mertens, Law of Federal Income                
          Taxation, sec. 3.20, at 31 (1994):                                            
               The purpose of the Blue Book [the Staff of Joint                         
               Committee’s general explanation of a tax statute] is to                  
               provide, in one volume, a compilation of the                             
               legislative history of a piece of tax legislation.                       
               While the document is most helpful as a handy reference                  
               volume it also gives some guidance.  Where the Blue                      
               Book’s explanation differs from that in a conference                     
               report it may serve to alert the reader that a                           
               technical correction is needed to reconcile the views.                   
               [Emphasis added.]                                                        
          Such is especially true as to the General Explanation of the 1986             
          Act, which was written by the Joint Committee of Taxation for the             
          100th Congress (Joint Committee), or, in other words, the                     
          Congress that next followed the Congress that passed the 1986                 
          Act.10  Although the Staff of Joint Committee’s explanation of a              


               10 The Joint Committee consisted of 10 Congressmen, 5 from               
                                                               (continued...)           





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