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B. Whether Section 931(a) Applies in the Absence of Regulations
Under Section 931(d)(2)
1. Regulation Authority Under Section 931(d)(2)
Section 931(d)(2) provides:
(2) Determination of source, etc.--The
determination as to whether income is described in
paragraph (1) or (2) of subsection (a) shall be made
under regulations prescribed by the Secretary.
The first issue for decision is whether section 931(a)
applies even though respondent has not issued regulations under
section 931(d)(2). The dissent argues, contrary to the view of
both parties, that section 931(d)(2) delegates to the Secretary
the authority to decide (simply by issuing or not issuing
regulations) whether the section 931(a) exclusion applies to
residents of Guam, American Samoa, and the CNMI. Dissenting op.
pp. 33-34. Because the Secretary has issued no regulations,
according to the dissenting opinion, the section 931(a) exclusion
has not applied to anyone since 1986, and it will never apply to
anyone if the Secretary does not issue regulations under section
931(d)(2).
We believe the view expressed in the dissenting opinion
conflicts with the language of the 1986 amendments to section
931, closely related non-Code provisions enacted in 1986, and
clear expressions of congressional intent contained in the
legislative history accompanying enactment of those provisions.
First, section 931(a) itself provides the exclusion, independent
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