26 CFR § 7.465-4 - Insufficient records.

---
identifier: "/us/cfr/t26/s7.465-4"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "26 CFR § 7.465-4 - Insufficient records."
title_number: 26
title_name: "Internal Revenue"
section_number: "7.465-4"
section_name: "Insufficient records."
chapter_name: "INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY"
subchapter_number: "A"
subchapter_name: "INCOME TAX"
part_number: "7"
part_name: "TEMPORARY INCOME TAX REGULATIONS UNDER THE TAX REFORM ACT OF 1976"
positive_law: false
currency: "2026-03-24"
last_updated: "2026-03-24"
format_version: "1.1.0"
generator: "[email protected]"
authority: "26 U.S.C. 7805, unless otherwise stated."
cfr_part: "7"
---


# 7.465-4 Insufficient records.

If sufficient records do not exist to accurately determine under § 7.465-2 the amount which a taxpayer is at risk on the effective date, the amount at risk shall be the taxpayer's basis in the activity reduced (but not below zero) by the taxpayer's share of amounts described in section 465(b) (3) or (4) with respect to the activity on the day before the effective date.

[T.D. 7504, 42 FR 42198, Aug. 22, 1977]