John F. Romann - Page 15

                                        -15-                                          
          object.  Freedman v. Commissioner, 71 T.C. 564 (1979); see, e.g.,           
          Loftus v. Commissioner, 90 T.C. 845, 861 (1988), affd. without              
          published opinion 872 F.2d 1021 (2d Cir. 1989).  This is true of            
          Federal courts generally, and not merely because of some special            
          characteristic of this Court.  Bender v. Williamsport Area School           
          Dist., 475 U.S. 534, 541 (1986).                                            
               Thirdly, a legislative regulation, which is issued pursuant            
          to a specific congressional grant of authority to the Secretary             
          of the Treasury, is entitled to greater deference than an                   
          interpretive regulation, which is promulgated under the general             
          rulemaking power vested in the Secretary by section 7805(a).                
          Peterson Marital Trust v. Commissioner, 102 T.C. 790, 797-798               
          (1994), (and cases cited therein), affd. 78 F.3d 795, 798 (2d               
          Cir. 1996).  Section 1.7476-1(b), Income Tax Regs. (relating to             
          interested parties), has been promulgated under the specific                
          instruction in section 7476(b)(1) that a person who wishes to be            
          an employee party-petitioner in a section 7476 declaratory                  
          judgment proceeding must be one “who has qualified under                    
          regulations prescribed by the Secretary as an interested party              
          for purposes of pursuing administrative remedies within the                 
          Internal Revenue Service”.  Accordingly, this regulation is a               
          legislative regulation.  To be valid, section 1.7476-1(b), Income           
          Tax Regs., need not be the only, or even the best, construction             
          of section 7476(b)(1).  See Atlantic Mutual Ins. Co. v.                     






Page:  Previous  5  6  7  8  9  10  11  12  13  14  15  16  17  18  19  20  21  22  23  24  Next

Last modified: May 25, 2011