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Part $1$

Refer to Sec. $385$ and answer the questions below.

Whenever Treasury Regulations are issued under this$$ section, what type are they likely to$$ be: legislative or$$ interpretative? Explain.

Assume Treasury Regulations under Sec. $385$ have been finalized. Will they be relevant to estate tax$$ matters? Explain.

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Part $1$

Requirement a$.$ Whenever Treasury Regulations are issued under this$$ section, what type are they likely to$$ be: legislative or$$ interpretative? Explain.

A$.$

Legislative. According to Sec.$385($a$),$ "The Secretary is authorized to prescribe such regulations as may be necessary or$$ appropriate...."

B$.$

Interpretative. Includes regulations that illustrate various computations.

C$.$

Legislative. Regulations that are issued under the general authority of Sec. $7805$ and make the Internal Revenue$$ Code's statutory language easier to understand and apply.

D$.$

Interpretative. According to Sec.$385($a$),$ Interpretive regulations are issued under the$$ IRS?s general authority of IRC Sec.$7805($a$)$ to clarify the language of the IRC.