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From the plain language of the statute, it is clear that the
Secretary has authority to promulgate regulations in order to
"achieve the purposes of this subchapter" in cases involving
section 6231(c), concerning, among other areas, criminal
investigations.
Section 301.6231(c)-5T, Temporary Proced. & Admin. Regs.,
supra, promulgated pursuant to the grant of authority in section
6231(c), is a legislative regulation because Congress explicitly
left a gap for the agency to fill. See Chevron U.S.A., Inc. v.
Natural Resources Defense Council, Inc., 467 U.S. 837, 843-844
(1984). A legislative regulation is given controlling weight
unless the regulation is arbitrary, capricious, or manifestly
contrary to the statute. See id.
In addition, courts are to interpret a regulation as a
whole, in light of the overall statutory scheme, and not to give
force to one phrase in isolation. See Norfolk Energy, Inc. v.
Hodel, 898 F.2d 1435, 1442 (9th Cir. 1990). Courts have a duty
to give effect to every part of a regulation and construe each
part in connection with every other part so as to produce a
harmonious whole. See Miami Heart Inst. v. Sullivan, 868 F.2d
410, 413 (11th Cir. 1989).
It is clear that section 301.6231(c)-5T, Temporary Proced. &
Admin. Regs., supra, concerning the treatment of partnership
items of partners under criminal tax investigation, differs from
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