- 14 -
Accordingly, we proceed to reconsider our opinions in
Redlark v. Commissioner, supra, and Kikalos v. Commissioner,
supra.
We set forth the pertinent provisions of section 163(h). We
then trace the history of the enactment of these provisions, from
Executive Branch proposals through the legislative process of the
Tax Reform Act of 1986 (H.R. 3838, the Ways and Means Committee’s
“clean bill”) and the retroactive amendments enacted in the
Technical and Miscellaneous Revenue Act of 1988 (TAMRA 1988). We
then evaluate the status of the regulations.
D. The Statute
Section 163(a) provides for the deductibility of all
interest paid or accrued in the taxable year on indebtedness.
The other subsections of section 163 provide limitations,
particularized rules, or definitions with regard to the allowance
8(...continued)
(1957), revd. on other grounds 258 F.2d 562 (9th Cir.
1958),] we should be careful to apply the Golsen
doctrine only under circumstances where the holding of
the Court of Appeals is squarely on point. See Golsen
v. Commissioner, supra at 757.
Two District Courts in the Fifth Circuit have concluded that
section 1.163-9T(b)(2)(i)(A), Temporary Income Tax Regs., 52 Fed.
Reg. 48409 (Dec. 22, 1987), is not invalid. Fitzmaurice v.
United States, 87 AFTR 2d 2001-654, 2001-1 USTC par. 50,198 (S.D.
Tex. 2001); Davis v. United States, 71 F. Supp. 2d 622 (W.D. Tex.
1999). Although these opinions are relevant to the instant case,
they do not control because they are not Court of Appeals
opinions.
Page: Previous 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 NextLast modified: May 25, 2011