-110-
Upholding this regulation should be almost trivially easy.
“So long as the Commissioner issues regulations that ‘implement
the congressional mandate in some reasonable manner,’ * * * we
must defer to the Commissioner’s interpretation. Only if the
code has a meaning that is clear, unambiguous, and in conflict
with a regulation does a court have the authority to reject the
Commissioner’s reasoned interpretation and invalidate the
regulation.” Redlark v. Commissioner, 141 F.3d 936, 939 (9th
Cir. 1998), revg. 106 T.C. 31 (1996). For the Secretary to
issue a regulation giving a clear 18-month grace period doesn’t
contradict anything in the Code, at least anything clearly and
unambiguously in the Code.2
2 Our Court has met with limited success in finding
regulations unreasonable after the extensive review of the sort
we do today. See Pac. First Fed. Sav. Bank v. Commissioner, 94
T.C. 101 (1990) (invalidating sec. 1.593-6(b)(1)(iv), Income Tax
Regs. after plenary review of statute and legislative history),
revd. 961 F.2d 800, 805 (9th Cir. 1992) (“we cannot usurp the
Treasury’s authority and invalidate the regulation unless it is
an unreasonable construction”), disagreed with by Peoples Fed.
S&L v. Commissioner, 948 F.2d 289, 300 (6th Cir. 1991) (“a court
may not substitute its own construction for the reasonable
interpretation of an agency”), disagreed with again by Bell Fed.
Sav. & Loan Association v. Commissioner, 40 F.3d 224,227 (7th
Cir. 1994), revg. T.C. Memo. 1991-368 (“choice among reasonable
interpretations is for the Commissioner, not the courts”), and
finally abrogated, Cent. Pa. Sav. Association & Subs. v.
Commissioner, 104 T.C. 384 (1995); see also Redlark v.
Commissioner, 106 T.C. 31 (1996) (invalidating sec. 1.163-
9T(b)(2)(i)(A), Temporary Income Tax Regs., 52 Fed. Reg. 48409
(Dec. 22, 1987) after plenary review of statute and legislative
history), revd. 141 F.3d 936 (9th Cir. 1998) (using language
quoted in text above), disagreed with by Allen v. United States,
(continued...)
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