Leroy and Leona Buttke v. Commissioner of Internal Revenue

LeRoy and Leona Buttke, (taxpayers), appeal a tax court decision upholding the retroactive application of title III of the Tax Reform Act of 1976, Pub.L.No. 94-455, 90 Stat. 1549 (1976) (the Act), and the deficiency in taxpayers’ 1976 income taxes assessed by the Commissioner of the Internal Revenue Service, (the Commissioner), in the amount of $11,606.55. We affirm.

In title III of the Act, Congress amended the minimum tax for preferential items, 26 U.S.C. §§ 56-58, by increasing the rate of taxation from ten to fifteen per cent, and reducing the amount of exempted preference items from…