Arnold P. Mordkin and Cindy Mordkin - Page 30

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          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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