In 2016 Treasury issued final regulations without proposing or adopting any additional provisions to limit the income inclusion in cases of multiple guarantors. T.D. 9792, 2016-48 I.R.B. 751; see Crestek, Inc. v. Commissioner, 149 T.C. ___, ___ n.8 (slip op. at 29-30) (July 27, 2017) (discussing 2015 NPRM and 2016 final regulations). The documents that petitioner cites are nonprecedential, and we would not rely on them for a point of law even if we found their reasoning applicable and persuasive.
Additionally, in 2015, the IRS did consider amending the regulations to include a cap on the inclusion of all income under § 956(c)(1)(C) to that of the loan amount guaranteed, see 80 Fed. Reg. 53,058, 53,062 (2015) (noting that "there could be multiple section 951 inclusions with respect to the same obligation that exceed, in the aggregate, the unpaid principal amount of the obligation" and requesting comments "on whether the Treasury Department and the IRS should adopt" a rule limiting this result), but decided against it. See Crestek, Inc. v. Comm’r of Internal Revenue, 149 T.C. 112, 129 n.8 (2017) (explaining the IRS’s decision not to issue final rules). Even 50 years after the adoption of the regulations at a time that the IRS had the benefit of hindsight with respect to the regulations’ application in practice, it chose to maintain the status quo.