- 39 -
Commissioner, 106 T.C. at 40-42; see also supra note 6 (regarding
the continuing vitality of these temporary regulations, notwith-
standing section 7805(e)(2)).
(1) Standards for Judging Validity of Regulations
Section 1.163-8T, Temporary Income Tax Regs., supra, was
promulgated under the authority of sections 469(l)(4)18 and 7805,
the basic regulation-prescribing authority for the Treasury
Department. T.D. 8145, 1987-2 C.B. 47, 50. In the relevant
Notice of Proposed Rulemaking, the Commissioner concluded that
section 1.163-8T, Temporary Income Tax Regs., supra, is an
interpretative regulation. 52 Fed. Reg. 25036 (July 2, 1987);
1987-2 C.B. 1053. For purposes of the instant case, we agree
with the Commissioner’s conclusion and treat section 1.163-8T,
Temporary Income Tax Regs., supra, as an interpretative
regulation because the legislative delegation to the Secretary to
17(...continued)
Given the interaction between secs. 1.163-8T and 1.163-9T,
Temporary Income Tax Regs., supra, and the fact that there is no
sec. 1.168-8T, Temporary Income Tax Regs., it appears that the
reference to sec. 1.168-8T, Temporary Income Tax Regs., supra, in
sec. 1.163-9T(b)(2)(i)(A), supra, should be to sec. 1.163-8T,
Temporary Income Tax Regs., supra, instead. See sec. 1.163-
9T(b)(3), Temporary Income Tax Regs., supra (cross-referencing
sec. 1.163-8T, Temporary Income Tax Regs., supra, for rules
determining the allocation of interest expense to various
activities).
18 Treasury Decision 8145 refers to sec. 469(k)(4). T.D.
8145, 1987-2 C.B. 47, 50. That provision was redesignated as
sec. 469(l)(4). See Appendix note 1. For convenience, we refer
to this provision as sec. 469(l)(4).
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