James L. Redlark Cheryl L. Redlark v. Commissioner of Internal Revenue

FLETCHER, Circuit Judge:

The Commissioner of Internal Revenue appeals the decision of the tax court striking down Temporary Treasury Regulation § 1.163-9T(b)(2)(i)(A). That regulation disallows the deduction of interest paid on overdue individual income taxes, even when the source of the personal income that gives rise to the tax deficiency is a business or trade. Plaintiffs James and Cheryl Redlark claim that the regulation is in conflict with the relevant provision of the tax code, 26 U.S.C. (“I.R.C.”) § 163(h)(2)(A). A sharply divided tax court accepted the Redlarks’ position. See Redlark…