Unionbancal Corporation - Page 14

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         characterization as a legislative regulation.  Cf. Batterton v.              
         Francis, 432 U.S. 416, 425 (1977); Levesque v. Block, 723 F.2d               
         175, 183 (1st Cir. 1983).                                                    
              As a general proposition, temporary regulations are entitled            
         to the same deference we accord final regulations.  See Schaefer             
         v. Commissioner, 105 T.C. 227, 229 (1995); Peterson Marital Trust            
         v. Commissioner, supra at 797; Truck & Equip. Corp. v.                       
         Commissioner, 98 T.C. 141, 149 (1992).  The Temporary Regulation             
         was promulgated without notice and public comment procedures.8               
         Petitioner argues that the Temporary Regulation therefore is not             
         entitled to Chevron deference, citing Bankers Life & Cas. Co. v.             

               8 The Treasury Decision in which the Temporary Regulation              
          was promulgated explained the absence of notice and public                  
          comment procedures as follows:                                              
                    There is a need for immediate guidance with respect to            
               the provisions contained in this Treasury decision.  For               
               this reason, it is found impracticable to issue this                   
               Treasury decision with notice and public procedure under               
               subsection (b) of section 553 of Title 5 of the United                 
               States Code * * *. [T.D. 7991, 1985-1 C.B. 71, 81.]                    
               Under the Administrative Procedure Act, 5 U.S.C. sec.                  
          553(b)(3)(B) (1984), notice and public comment procedures are not           
          required “when the agency for good cause finds (and incorporates            
          the finding and a brief statement of reasons therefor in the                
          rules issued) that notice and public procedure thereon are                  
          impracticable, unnecessary, or contrary to the public interest.”            
               Petitioner does not contend that the Temporary Regulation is           
          invalid for failure to comply with notice and public comment                
          procedures or to meet the requirements of the good cause                    
          exception cited above.  Accordingly, we do not reach these                  

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