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deference, especially when the staff views expressed are
consistent with items of legislative history. Id.
I agree with Judge Thornton’s concurring opinion to the
extent that he concludes that the majority’s reliance on the Blue
Book is misplaced. The Blue Book represents only the view of the
Congressional staff; it was not approved by Congress.
Furthermore, the Blue Book could not have been relied upon by
Congress because it was published during the 100th Congress and
the Tax Reform Act was enacted by the 99th Congress. Also, the
Blue Book should not be relied on because it is inconsistent with
the Conference Committee Report, which would not treat interest
on a tax deficiency arising from a sole proprietorship as
personal interest, whereas the Blue Book would treat such
interest as personal interest.2 Consequently, the majority’s
reliance on the Blue Book in validating section 1.163-
9T(b)(2)(i)(A), Temporary Income Tax Regs., supra, must be
rejected.
Section 1.163-9T(b)(2)(i)(A), Temporary Income Tax Regs.,
supra, was not promulgated as part of a legislative mandate
permitting the Commissioner to write regulations. Rather, those
2 The Blue Book provides: “Personal interest also includes
interest on underpayments of individual Federal, State, or local
income taxes notwithstanding that all or a portion of the income
may have arisen in a trade or business, because such taxes are
not considered derived from the conduct of a trade or business.”
Staff of Joint Comm. On Taxation, General Explanation of the Tax
Reform Act of 1986, at 266. (J. Comm. Print 1987).
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