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Section 7463(f)(2) refers to the case of “an appeal under
section 6330(d)(1)(A) to the Tax Court of a determination in
which the unpaid tax does not exceed $50,000.” (Emphasis added.)
The words “in which” could conceivably refer back to either “an
appeal” or “a determination”. An “appeal” within the meaning of
section 7463(f)(2) occurs when the taxpayer petitions the Tax
Court. However, if the words “in which” were meant to refer to
“an appeal”, then inclusion of the words “of a determination”
immediately preceding “in which the unpaid tax does not exceed
$50,000” would be rendered surplusage and could have been
omitted. Statutory language is interpreted by giving each word
its plain, obvious, and rational meaning. Am. Tobacco Co. v.
Patterson, 456 U.S. 63, 68 (1982); United States v. Merriam, 263
U.S. 179, 187-188 (1923); Liddle v. Commissioner, 103 T.C. 285,
293 n.4 (1994), affd. 65 F.3d 329 (3d Cir. 1995). Fundamental
principles of statutory construction generally preclude us from
reading a statute in such a way as to render statutory language
mere surplusage. Zapara v. Commissioner, 126 T.C. 215, 231
(2006); see also United States v. Campos-Serrano, 404 U.S. 293,
301 n.14 (1971). Failure to give any meaning to the words “of a
determination” in interpreting section 7463(f)(2) would violate
these canons of statutory construction. In addition, it is a
general rule of style and composition to position a modifying
word or clause close to the term it explains in order to avoid
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Last modified: November 10, 2007