§209

209(a) effectively overruled the holding in Rand v.

. § 201–219. Encino Motorcars, LLC, 579 318 U.S. at 215. The exemption applied to “any salesman, partsman, or mechanic primarily engaged in selling or servicing automobiles.” Id. (quoting Fair Labor Standards Amendments of 1966, Pub. L. No. 89-601, § 209, 80 Stat. 830, 836). In 1970, the Department of Labor (Department) issued a regulation that interpreted the exemption as excluding “service advisors,” dealership employees who market and sell automobile repairs to customers. Id. at 214–16. The U

at 3084 (2015), because the return was filed before 2015. Respondent concedes that the correct penalty amount is therefore lower than that determined in the notice ofdeficiency. 3The record is less clear about Mrs. Cheves' employment situation, but it appears she also lost herjob and eventually was rehired at around halfofher pr

at 194, that, for purposes ofsection 7430, the ; IRS's position was nonetheless substantiallyjustified.8 Similarly, after the Supreme Court held that a "literal reading ofthe" statutory language supported the conclusion adverse to the Governmentand that "[t]he text of[18 U.S.C.] § 209(a) thus indicates that employment status is an element ofthe offense", Crandon v.

61 (1939)), explains the amendments to section 1426(b)(11) and (12) in the Social Security tax statute by a cross-reference to .the` corresponding amendments-to the Social Security benefits provisions, section 209(b)(11) and (12) .

ome, such as his salary, from taxation. - 14 - ordinary income. See sec. 163(d)(3)(B), I.R.C. 1954, as amended by TRA 1969. In 1976, Congress revised section 163(d) to reduce the use of this deduction to shelter noninvestment types of income.14 See sec. 209(a) of the Tax Reform Act of 1976 (TRA 1976), Pub. L. 94-455, 90 Stat. 1542. The definition of investment income remained unchanged, but the TRA 1976 amendment eliminated any offset of investment interest expense against long-term capital gain