- 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 scrutinyPage: 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