Bank One Corporation - Page 77

                                        -160-                                         
          taxpayers and clearly reflect income for Federal income tax                 
          purposes.”  Id.  The Treasury Department has never prescribed the           
          referenced valuation rules.                                                 
               We proceed to interpret section 475, the provisions of which           
          we set forth in appendix B.56  These provisions were added to the           
          Internal Revenue Code by the Omnibus Budget Reconciliation Act of           
          1993, Pub. L. 103-66, sec. 13223, 107 Stat. 481, effective with             
          taxable years ended after December 30, 1993.57  We are the first            
          court to opine upon section 475 in any regard.                              




          56 Petitioner argues, in part, that we should interpret sec.                
          475 favorably to it because the Treasury Department has failed to           
          fulfill Congress’s mandate to prescribe regulations interpreting            
          the valuation requirements of that section.  We reject this                 
          argument.  In the absence of regulations, we construe the                   
          statutory text in light of all pertinent evidence, textual and              
          contextual, of its meaning.  See Commissioner v. Soliman,                   
          506 U.S. 168, 173 (1993); Crane v. Commissioner, 331 U.S. 1, 6              
          (1947); Old Colony R. Co. v. Commissioner, 284 U.S. 552, 560                
          (1932).  See also White v. United States, 305 U.S. 281, 292                 
          (1938), where the Supreme Court rejected a similar argument,                
          stating:                                                                    
               We are not impressed by the argument that, as the                      
               question here decided is doubtful, all doubts should be                
               resolved in favor of the taxpayer.  It is the function                 
               and duty of courts to resolve doubts.  We know of no                   
               reason why that function should be abdicated in a tax                  
               case more than in any other * * *                                      
          57 Sec. 475 was amended in the Taxpayer Relief Act of 1997,                 
          Pub. L. 105-34, sec. 1001(b), 111 Stat. 906, to redesignate old             
          sec. 475(e) as sec. 475(g) and to add new sec. 475(e) and (f) to            
          allow dealers in commodities and traders in securities and                  
          commodities to elect mark-to-market accounting.  That amendment             
          is not applicable here.  Id. sec. 1001(d)(4).                               




Page:  Previous  150  151  152  153  154  155  156  157  158  159  160  161  162  163  164  165  166  167  168  169  Next

Last modified: May 25, 2011