Tebon v. Commissioner

Decided December 3, 1970

United States Tax Court · decided 1970-12-03

Held: Sec. 1.1302-3(b), Income Tax Regs., providing that for purposes of the averaging computation base period income may never be less than zero, is valid. Held: Sec. 1.1302-3(b), Income Tax Regs., providing that for purposes of the averaging computation base period income may never be less than zero, is valid.

Good law ✅— No negative treatment on recordhow we know

Decision will be entered for the respondent · Decided 1970-12-03

How this case has been cited

Cited by 13 later decisions — most recently September 1993

1 federal appellate · 2 state decisions

Later decisions citing this case, by decade. The current decade is in progress, and our corpus holds fewer opinions from the most recent years, so the latest bars are undercounted — not a real decline.

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Fokbbster,

¶1dissenting: In my view the language of section 1302 (c) (2) leaves no room for interpretation or movement. The pertinent words of the section are:

Base period income. — The base period income for any taxable year is the taxable income for such year first increased and then decreased (but not below zero) …

¶2It is simply a syllogism that taxable income for the taxable year could never go below zero if the lowest allowable figure for each of the base period years was zero. The language of regulation section 1.1302-3 (b) (1) renders the parenthetical element of the statute meaningless and amounts to legislation by regulation. I believe that the regulation is contrary to the express language of the statute and would hold it invalid.