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Petitioners contend that (as long as the family ownership
test of section 2057(e)(1)(B)(i) and (ii) is met), for purposes
of meeting the 50-percent liquidity test of section
2057(b)(1)(C), an “interest” in a family corporation or
partnership may include not only equity ownership interests but
also loan interests.
Respondent contends that, for purposes of meeting the 50-
percent liquidity test of section 2057(b)(1)(C), an “interest” in
a family corporation or partnership does not include a loan
interest in the family corporation.2
We begin our analysis with the language and structure of the
statute itself. Kaiser Aluminum & Chem. Corp. v. Bonjorno, 494
U.S. 827, 835 (1990); United States v. S.A., 129 F.3d 995, 998
(8th Cir. 1997); Allen v. Commissioner, 118 T.C. 1, 7 (2002).
In interpreting a statute, our purpose is to give effect to
Congress’s intent. Chevron U.S.A., Inc. v. Natural Res. Def.
Council, Inc., 467 U.S. 837, 842-843 (1984); Iowa 80 Group, Inc.
v. IRS, 406 F.3d 950, 952 (8th Cir. 2005); Fernandez v.
Commissioner, 114 T.C. 324, 329 (2000). If the language of a
statute is plain and unambiguous, the function of the Court is to
apply the statute according to its terms. See United States v.
Ron Pair Enters., Inc., 489 U.S. 235, 240-241 (1989). If the
2 Respondent’s position is also stated in Tech. Adv. Mem.
200410002 (Nov. 6, 2003).
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