James E. Anderson and Cheryl J. Latos - Page 27

                                       - 27 -                                         
          States, 469 U.S. 70, 76 (1984).                                             
               Because the Secretary promulgated section 31.3121(b)(20)-1,            
          Employment Tax Regs., under his general authority to “prescribe             
          all needful rules and regulations”, see sec. 7805(a), the Court             
          owes “the interpretation less deference than a regulation issued            
          under a specific grant of authority to define a statutory term or           
          prescribe a method of executing a statutory provision”, see Rowan           
          Cos. v. United States, 452 U.S. 247, 253 (1981).  We defer to the           
          Secretary’s regulatory interpretation of the Code so long as it             
          is reasonable.  Cottage Sav. Association v. Commissioner, 499               
          U.S. 554, 560-561 (1991); Natl. Muffler Dealers Association, Inc.           
          v. United States, 440 U.S. 472, 476-477 (1979).  In determining             
          whether a particular regulation carries out the congressional               
          mandate in a proper manner, we look to see whether the regulation           
          harmonizes with the plain language of the statute, its origin,              
          and its purpose.  Natl. Muffler Dealers Association, Inc. v.                
          United States, supra at 477.  A regulation may have particular              
          force if it is a substantially contemporaneous construction of              
          the statute by those presumed to have been aware of congressional           
          intent.  Id.  If the regulation dates from a later period, the              
          manner in which it evolved merits inquiry.  Id.  Other relevant             
          considerations are the length of time the regulation has been in            
          effect, the reliance placed on it, the consistency of the                   
          Commissioner’s interpretation, and the degree of scrutiny                   

Page:  Previous  17  18  19  20  21  22  23  24  25  26  27  28  29  30  31  32  33  34  35  36  Next

Last modified: May 25, 2011