Richard R. Allen, Sr., a Resident of Fayetteville, Nc v. United States of America, Acting by and Through the Internal Revenue

OPINION

ERVIN, Circuit Judge:

The Internal Revenue Service (IRS) and taxpayer Allen dispute whether § 163(h) of the Internal Revenue Code (I.R.C.) of 1986 is facially ambiguous, and further, whether Temp. Treas. Reg. § 1.163 — 9T(b)(2)(i)(A), which prohibits the deduction of individual income tax deficiency interest, is a valid regulation. See I.R.C. § 163(h)(1986); Temp. Treas. Reg. § 1.163-9T (1987). The district court found for Allen, ruling that the language of § 163(h) is clear, unambiguous, and in conflict with Temp. Treas. Reg. § 1.163-9T(b)(2)(i)(A).

As the expert agency charged with…