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given section 1.163-9T(b)(2)(i)(A), Temporary Income Tax Regs.,
supra, as follows:
In the absence of any confirmation that the temporary
regulation has, after the fact, undergone the scrutiny
that typifies a pre-adoption notice and comment period,
one could argue that section 1.163-9T(b)(2)(i)(A) is
entitled to no more deference than a proposed
regulation. * * *
Whatever questions the “temporary” nature of this
regulation might raise as to the degree of deference it
is owed, the parties themselves have chosen not to
pursue them. * * * [Kikalos v. Commissioner, 190 F.3d
791, 796 (7th Cir. 1999), revg. T.C. Memo. 1998-92.]
With regard to the relevant legislative history relating to
enactment in 1986 of subsection (h) of section 163, I submit that
a reading thereof is available which has not yet been considered
by the various courts addressing this issue and which: (1) Would
support a plain-meaning interpretation of section 163(h)(2)(A)
(allowing the deduction of individual income tax deficiency
interest relating to a trade or business), and (2) which would
not support respondent’s per se disallowance rule.
In the Joint Statement of Managers of the Conference Report,
H. Conf. Rept. 99-841 (Vol. II) at II-154 (1986), 1986-3 C.B.
(Vol. 4), 1, 154, published on September 18, 1986, the following
statement is made:
Under the conference agreement, personal interest
is not deductible. Personal interest is any interest,
other than interest incurred or continued in connection
with the conduct of a trade or business * * * Personal
interest also generally includes interest on tax
deficiencies. [Emphasis added.]
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