Jackie L. And Janet G. McDonald v. Commissioner of Internal Revenue

GARWOOD, Circuit Judge:

This is an appeal by the Commissioner of Internal Revenue from a judgment of the United States Tax Court holding invalid Treasury Regulation section 1.57 — 1(f)(3), which makes the standard of “fair market value ... determined without regard to any [lapse] restriction” contained in Internal Revenue Code (“Code”) section 83 applicable, for purposes of the minimum tax imposed on items of tax preference, to valuation under Code former section 57(a)(6) (1969) of stock acquirecUby"AxéFcis eTof a Code section 422 qualified stock option. We conclude that, absent a clear…