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Having decided that the Regulation, by its terms, precludes
a redetermination of FSC commission expenses on the undisputed
facts of this case, we now consider petitioner's alternative
contention that the Regulation must be declared invalid.
Section 925(b) authorizes the Secretary to prescribe
regulations with respect to commissions, rentals, and marginal
costing that are consistent with the rules set forth in section
925(a). While there may be a question as to whether the
Regulation falls within the scope of section 925(b) and is
therefore entitled to an "especially high degree of deference" as
a "legislative" regulation, we find it unnecessary to resolve
this question. Cf. Sim-Air, USA, Ltd. v. Commissioner, 98 T.C.
at 194. For reasons discussed below, even under the lesser
degree of deference accorded "interpretative" regulations (those
issued pursuant to the Secretary's general rulemaking authority
under section 7805(a)), we conclude that the Regulation is valid.
Petitioner proffers a number of arguments in support of its
position that the Regulation is both unreasonable and "contrary
to the plain language, origins and purpose of section 925(a)".
See, e.g., National Muffler Dealers Association, Inc. v. United
States, 440 U.S. 472, 477-478 (1979); Sim-Air, USA, Ltd. v.
Commissioner, supra at 194; CWT Farms, Inc. v. Commissioner, 79
T.C. 1054, 1062 (1982), affd. 755 F.2d 790 (11th Cir. 1985).
None are cogent.
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