Pepcol Manufacturing Co. v. Commissioner of Internal Revenue

I respectfully dissent from the majority opinion in this case. I would affirm on the basis of the tax court’s opinion.

*358As the majority recognizes, when the Treasury is given a specific grant of authority to promulgate regulations, there is a strong presumption in favor of the validity of those regulations. See United States v. Vogel Fertilizer Co., 455 U.S. 16, 24, 102 S.Ct. 821, 827, 70 L.Ed.2d 792 (1982); Commissioner v. Portland Cement Co. of Utah, 450 U.S. 156, 169, 101 S.Ct. 1037, 1045, 67 L.Ed.2d 140 (1981). Regulations are invalid, however, if they are unreasonable or plainly…