Charles Hefti Marion Hefti v. Commissioner of Internal Revenue of the United States of America

McMILLIAN, Circuit Judge.

This appeal follows a remand to the Tax Court 1 pursuant to Hefti v. Commissioner, 899 F.2d 709 (8th Cir.1990), for a determination whether Treas.Reg. § 301.7609-5(b) exceeded the statute, 26 U.S.C. § 7609(e). The tax court, in a thorough supplemental opinion, first distinguished prior circuit cases and then upheld the regulation as a reasonable interpretation of the statute. 97 T.C. No. 11 (filed July 31, 1991) (Docket No. 4447-88) (hereinafter supp. op.). For reversal, the taxpayers argue the tax court’s decision is inconsistent with and cannot be distinguished from…