-85-
We hold, contrary to respondent’s determination, that
section 882(c)(2) does not preclude petitioner from deducting
the expenses claimed on the subject returns. We have considered
all arguments made by the parties as to the manner in which we
resolve this case and have found those arguments not discussed
herein to be without merit.
Decision will be entered
for petitioner.
Reviewed by the Court.
GERBER, COHEN, WELLS, COLVIN, VASQUEZ, GALE, THORNTON,
MARVEL, HAINES, GOEKE, WHERRY, and KROUPA, JJ., agree with this
majority opinion.
CHIECHI and FOLEY, JJ., concur in result only.
31(...continued)
requirement. Nor have we found that such was the case. Instead,
respondent invites this Court to take a fresh look at the
relevant text in the light of the disputed regulations, to reject
the judiciary’s almost 70-year-old interpretation of that text,
and to “incorporate [into the text] the timely filing concept as
embodied in the regulation”. Respondent asserts that not reading
a timely filing requirement into the statute “is administratively
unworkable * * * [in that it] would permit foreign taxpayers to
live off the U.S. fisc indefinitely, file their returns only when
20-20 hindsight suggests it is in their own best interests to do
so, and put the Service at an extreme disadvantage in performing
its statutory duties.” To say the least, such equitable
arguments are made more appropriately to Congress than to the
judiciary.
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