Greenberg Brothers Partnership #4, a.k.a. Breathless Associates, Richard M. Greenberg, Tax Matters Partner, et al. - Page 12

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          agreements are not subject to the consistent settlement provision           
          of section 6224(c)(2).                                                      
               Participants argue in the alternative that the regulation is           
          invalid insofar as it adds restrictions that are inconsistent               
          with section 6224(c)(2).  In Chevron U.S.A., Inc. v. Natural                
          Resources Defense Council, Inc., 467 U.S. 837, 843 (1984), the              
          Supreme Court set forth the following analysis:                             
               If * * * the court determines Congress has not directly                
               addressed the precise question at issue, the court does not            
               simply impose its own construction on the statute, as would            
               be necessary in the absence of an administrative                       
               interpretation.  Rather, if the statute is silent or                   
               ambiguous with respect to the specific issue, the question             
               for the court is whether the agency's answer is based on a             
               permissible construction of the statute. [Fn. refs.                    
               omitted.]                                                              
          We have already concluded that the statute is silent as to the              
          scope of consistent settlements.  Under the Chevron analysis, the           
          question remains whether the requirements in section 301.6224(c)-           
          3T, Temporary Proced. & Admin. Regs., supra, are a permissible              
          construction of the statute.  Chevron U.S.A., Inc. v. Natural               
          Resources Defense Council, Inc., supra.12                                   



               12                                                                     
                    As a general proposition, temporary regulations are               
          accorded the same weight as final regulations.  Peterson Marital            
          Trust v. Commissioner, 78 F.3d 795, 798 (2d Cir. 1996), affg. 102           
          T.C. 790 (1994); Nissho Iwai Am. Corp. v. Commissioner, 89 T.C.             
          765, 776 (1987).  In judging the validity of a temporary                    
          regulation, we employ the same analysis as that applied to a                
          final regulation.  Schaefer v. Commissioner, 105 T.C. 227, 229              
          (1995).                                                                     




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