-54- States, 440 U.S. 472 (1979).15 See, e.g., Robinson v. Commissioner, 119 T.C. 44, 70 (2002); Walton v. Commissioner, 115 T.C. 589, 597-598 (2000); UnionBancal Corp. v. Commissioner, 113 T.C. 309, 317 (1999). Under Natl. Muffler, which like the present case involved an interpretative regulation issued under section 7805(a), an interpretative regulation is valid if it implements a congressional mandate in a reasonable manner.16 See Natl. Muffler Dealers Association v. United States, supra at 476- 477 (citing United States v. Cartwright, 411 U.S. 546, 550 (1973); United States v. Correll, supra at 307); see also United States v. Cleveland Indians Baseball Co., 532 U.S. 200, 218-219 (2001); Newark Morning Ledger Co. v. United States, 507 U.S. 546, 575-576 (1993); Rowan Cos. v. United States, 452 U.S. 247, 252-253 (1981). We must defer to a Federal tax regulation that is reasonable under this standard. Cf. United States v. Mead Corp., 533 U.S. 218 (2001); Smiley v. Citibank (S.D.), N.A., 517 U.S. 735, 739 (1996). 15 A task force of the American Bar Association has recently concluded likewise that the Supreme Court primarily reviews interpretative Federal tax regulations under the analysis set forth in Natl. Muffler Dealers Association v. United States, 440 U.S. 472 (1979). See Salem et al., ABA Section of Taxn. Report of the Task Force on Judicial Deference, 104 Tax Notes 1231 (2004). 16 Legislative regulations, by contrast, are upheld “unless arbitrary, capricious, or manifestly contrary to the statute”. Chevron U.S.A. Inc. v. Natural Res. Def. Council, Inc., 467 U.S. 837, 844 (1984).Page: Previous 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 Next
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