- 61 -
to the deference accorded under Skidmore v. Swift & Co., 323 U.S.
134 (1944). United States v. Mead Corp., supra at 234-235, 237.
Pursuant to Skidmore, the agency’s interpretation is accorded
respect proportional to its “power to persuade”. Id. at 235;
Pool Co. v. Cooper, supra at 177 (in the absence of Chevron
deference, pursuant to Mead the agency’s interpretation is
accorded respect under Skidmore according to its “power to
persuade”); Landmark Legal Found. v. IRS, 267 F.3d 1132, 1135-
1136 (D.C. Cir. 2001) (when Chevron deference does not apply, the
Internal Revenue Service’s interpretations are entitled to “no
more than the weight derived from their ‘power to persuade.’”).
III. Interpretive Versus Legislative Regulations
Treasury regulations are either legislative or interpretive
in character. Tutor-Saliba Corp. v. Commissioner, 115 T.C. 1, 7
(2000). Interpretive regulations are promulgated under section
7805; legislative regulations, however, are issued pursuant to a
specific Congressional delegation of authority, to the Secretary
of the Treasury or the Commissioner, to issue rules or
regulations that have the force and effect of law. Id.; Hefti v.
Commissioner, 97 T.C. 180, 189 (1991), affd. 983 F.2d 868 (8th
Cir. 1993). “An interpretive regulation may be contrasted to a
legislative regulation, one which is mandated specifically in the
statute and has the force and effect of law.” Matheson v.
Commissioner, 74 T.C. 836, 840 n.7 (1980).
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