In American Medical Association V

In American Medical Association v.United States Internal Revenue Service the IRS had proposed a rule that made changes to the way the allocation of dues and memberships were taxed using a seven factor test.After the comment period the IRS revised the rule to a three factor test that was published as final.The AMA claimed that the rule was invalid because there had been no comment period for the revision.The court held that:

A) the IRS should have given proper notice of the revision. Because they had not done so, the new rule was invalid.
B) the IRS should have given property notice of the revision but it did invalidate the rule because the IRS is not required to go through formal rule making procedure.
C) the IRS did not need to give public notice of the revision because it was a logical outgrowth of the original rule.
D) the IRS did not need to give public notice because the new test was based on the same public policy as the original rule