- 30 -
Commissioner, 911 F.2d 1128, 1137-1138 (5th Cir. 1990), affg. in
part and revg. in part 92 T.C. 1276 (1989). The source of the
authority under which a regulation is promulgated will be deter-
minative of such classification. Id. at 1137. A legislative
regulation that is "issued under a specific grant of authority to
define a statutory term or prescribe a method of executing a
statutory provision" is to be accorded more weight than an inter-
pretative regulation that is promulgated under the more general
authority of section 7805(a). See United States v. Vogel Fer-
tilizer Co., 455 U.S. 16, 24 (1982) (quoting Rowan Cos. v. United
States, 452 U.S. 247, 253 (1981)).
There are two possible sources of authority for the issuance
by the Secretary of section 1.469-5T(a)(1), Temporary Income Tax
Regs., supra, the validity of which petitioners challenge:
(1) The general authority granted to the Secretary by section
7805(a)21 or (2) the specific legislative authority granted to
the Secretary by section 469(l)(1) to prescribe regulations that
specify what constitutes material participation.
If section 1.469-5T(a)(1), Temporary Income Tax Regs.,
supra, that petitioners challenge were promulgated pursuant to
the general authority granted to the Secretary by section
7805(a), it would be considered an interpretative regulation.
21 Sec. 7805(a) provides in pertinent part that "the Secretary
shall prescribe all needful rules and regulations for the enfor-
cement of this title".
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