-55-
An interpretative Federal tax regulation is reasonable under
Natl. Muffler Dealers Association v. United States, supra, only
if it “harmonizes with the plain language of the statute, its
origin, and its purpose.” Id. at 477; see also United States v.
Vogel Fertilizer Co., 455 U.S. 16, 26 (1982). For this purpose,
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. If the regulation dates from a
later period, the manner in which it evolved merits
inquiry. 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 Congress has
devoted to the regulation during subsequent
re-enactments of the statute. [Natl. Muffler Dealers
Association v. United States, supra at 477.]
Following its decision in Natl. Muffler Dealers Association
v. United States, supra, the Supreme Court decided Chevron
U.S.A., Inc. v. Natural Res. Def. Council, Inc., 467 U.S. 837
(1984). There, the Supreme Court stated:
When a court reviews an agency’s construction of
the statute which it administers, it is confronted with
two questions. First, always, is the question whether
Congress has directly spoken to the precise question at
issue. If the intent of Congress is clear, that is the
end of the matter; for the court, as well as the
agency, must give effect to the unambiguously expressed
intent of Congress.9 If, however, the court determines
Congress has not directly addressed the precise
question at issue, the court does not simply impose its
own construction on the statute, as would be necessary
in the absence of an administrative interpretation.
Rather, if the statute is silent or ambiguous with
respect to the specific issue, the question for the
court is whether the agency’s answer is based on a
permissible construction of the statute.
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