CITES BY TOPIC:  regulations


The following general principles apply to the need for regulations:

  1. The ability to write regulations is an implementation of Congress' Article 4, Section 3, Clause 2 power to "make all needful rules respecting the property and OTHER territory of the United States". Such property INCLUDES such things as:
    1. A privilege. All privileges constitute loans or grants of government property with conditions or legal strings attached taking the form of civil statutes.  They can be taken away at the whim of the grantor of the property.  This gets back to the original definition of “ownership”, the essence of which is “the right to exclude” per the U.S. Supreme court:

      “We have repeatedly held that, as to property reserved by its owner for private use, “the right to exclude [others is] `one of the most essential sticks in the bundle of rights that are commonly characterized as property.’ ” Loretto v. Teleprompter Manhattan CATV Corp., 458 U.S. 419, 433 (1982), quoting Kaiser Aetna v. United States, 444 U.S. 164, 176 (1979). “

      [Nollan v. California Coastal Comm’n, 483 U.S. 825  (1987)]


      “In this case, we hold that the “right to exclude,” so universally held to be a fundamental element of the property right,[11] falls within this category of interests that the Government cannot take without compensation.
      [Kaiser Aetna v. United States, 444 U.S. 164 (1979)]


      [11] See, e. g., United States v. Pueblo of San Ildefonso, 206 Ct.Cl. 649, 669-670, 513 F.2d. 1383, 1394 (1975)United States v. Lutz, 295 F.2d. 736, 740 (CA5 1961). As stated by Mr. Justice Brandeis, “[a]n essential element of individual property is the legal right to exclude others from enjoying it.” International News Service v. Associated Press, 248 U.S. 215, 250 (1918) (dissenting opinion).

    2. A franchise.  This is a specific TYPE of privilege which constitutes a contract or agreement.  The legal definition of “franchise” is that it is “a privilege in the hands of a subject”.  So to put government property in your HANDS or your CUSTODY, you become party to a franchise.
    3. A commercial benefit offered by government.
    4. A government “service”. We call these “civil services” in our Disclaimer, Section 4.
    5. An “entitlement”
    6. A license.
    7. Free healthcare which actually isn’t really “free” because they make you pay for it one way or another.
    8. Old age pension such as Social Security.
    9. The ability to vote or serve on jury duty. Convicted felons cannot do either in most states, and therefore these two things are PRIVILEGES, not RIGHTS.
    10. A privilege granted by a statute against the government, such as tax remedies.
    11. A privilege granted by statute against ANOTHER man or woman who is ALSO party to the same franchise contract or compact that you are party to.
    12. The civil status that the privilege attaches to, such as “person”, “taxpayer”, “citizen”, or “resident”, all of which are creations of and therefore PROPERTY of their creator, which is the Legislative branch.
  2. The ability to REGULATE the above kinds of property under Article 4, Section 3, Clause 2 is found in 5 U.S.C. §553(a)(2):

    5 U.S. Code § 553 – Rule making

    (a)This section applies, according to the provisions thereof, except to the extent that there is involved—

    [. . .]

    (2) a matter relating to agency management or personnel or to public property, loans, grants, benefits, or contracts.

  3. If the Executive Branch alleges the authority to regulate your behavior or make you the target of administrative enforcement, the burden of proof imposed upon them is to prove that you have THEIR property in your custody and therefore you are acting as THEIR public officer. A public officer, after all, is legally defined as someone "in charge of the property of the public". If they cannot prove you are using or benefitting from their property, their authority to regulate CEASES:

    “The compensation which the owners of property, not having any special rights or privileges from the government in connection with it, may demand for its use, or for their own services in union with it, forms no element of consideration in prescribing regulations for that purpose.

    [. . .]

    “It is only where some right or privilege [which are GOVERNMENT PROPERTY] is conferred by the government or municipality upon the owner, which he can use in connection with his property, or by means of which the use of his property is rendered more valuable to him, or he thereby enjoys an advantage over others, that the compensation to be received by him becomes a legitimate matter of regulation. Submission to the regulation of compensation in such cases is an implied condition of the grant, and the State, in exercising its power of prescribing the compensation, only determines the conditions upon which its concession shall be enjoyed. When the privilege ends, the power of regulation ceases.”
    [Munn v. Illinois, 94 U.S. 113 (1876) ]

  4. We have found NO DIRECT LEGAL AUTHORITY in the Constitution that authorizes the use of loans, grants, or gifts to CREATE new public offices. Thus, the exercise of such authority is a violation of the Constitution.
  5. God FORBIDS Christians from being a borrower of government property or even a Buyer of government "civil services" under the U.C.C.. Those who violate this Biblical prohibition are CURSED by Him.

    Curses of Disobedience [to God’s Laws]

    “The alien [Washington, D.C. is legislatively “alien” in relation to states of the Union] who is among you shall rise higher and higher above you, and you shall come down lower and lower [malicious destruction of EQUAL PROTECTION and EQUAL TREATMENT by abusing FRANCHISES].  He shall lend to you [Federal Reserve counterfeiting franchise], but you shall not lend to him; he shall be the head, and you shall be the tail.

    “Moreover all these curses shall come upon you and pursue and overtake you, until you are destroyed, because you did not obey the voice of the Lord your God, to keep His commandments and His statutes which He commanded you.  And they shall be upon you for a sign and a wonder, and on your descendants forever.

    “Because you did not serve [ONLY] the Lord your God with joy and gladness of heart, for the abundance of everything,  therefore you shall serve your [covetous thieving lawyer] enemies, whom the Lord will send against you, in hunger, in thirst, in nakedness, and in need of everything; and He will put a yoke of iron [franchise codes] on your neck until He has destroyed you.  The Lord will bring a nation against you from afar [the District of CRIMINALS], from the end of the earth, as swift as the eagle flies [the American Eagle], a nation whose language [LEGALESE] you will not understand,  a nation of fierce [coercive and fascist] countenance, which does not respect the elderly [assassinates them by denying them healthcare through bureaucratic delays on an Obamacare waiting list] nor show favor to the young [destroying their ability to learn in the public FOOL system].  And they shall eat the increase of your livestock and the produce of your land [with “trade or business” franchise taxes], until you [and all your property] are destroyed [or STOLEN/CONFISCATED]; they shall not leave you grain or new wine or oil, or the increase of your cattle or the offspring of your flocks, until they have destroyed you.
    [Deut. 28:43-51, Bible, NKJV]


    “The rich rules over the poor,
    And the borrower is servant to the lender.
    [Prov. 22:7, Bible, NKJV]


    “I [God] brought you up from Egypt [government slavery to a civil ruler who claimed to be a deity] and brought you to the land of which I swore to your fathers; and I said, ‘I will never break My covenant with you. And you shall make no covenant [contract or franchise or agreement of ANY kind] with the inhabitants of this [corrupt pagan] land; you shall tear down their [man/government worshipping socialist] altars.‘ But you have not obeyed Me. Why have you done this?

    “Therefore I also said, ‘I will not drive them out before you; but they will become as thorns [terrorists and persecutors] in your side and their gods will be a snare [slavery!] to you.'”

    So it was, when the Angel of the LORD spoke these words to all the children of Israel, that the people lifted up their voices and wept.
    [Judges 2:1-4, Bible, NKJV]


    “Do you not know that friendship with the world is enmity with God? Whoever therefore wants to be a friend [“citizen”, “resident”, “taxpayer”, “inhabitant”, or “subject” under a king or political ruler] of the world [or any man-made kingdom other than God’s Kingdom] makes himself an enemy of God. ”
    [James 4:4, Bible, NKJV]


    You shall make no covenant [contract or franchise] with them [foreigners, pagans], nor with their [pagan government] gods [laws or judges]. They shall not dwell in your land [and you shall not dwell in theirs by becoming a “resident” in the process of contracting with them], lest they make you sin against Me [God]. For if you serve their gods [under contract or agreement or franchise], it will surely be a snare to you.”
    [Exodus 23:32-33, Bible, NKJV]

    For more quotes like the above see:

    Commandments About Relationship of Believers to the World (OFFSITE LINK- SEDM

  6. Statutes+regulations="the law".
  7. Authority to write regulations is limited to the content of the statute they implement and may not exceed the scope of the statute.
  8. No regulations are needed if the statute only applies to government employees or officers. See:
    8.1. 5 U.S.C. §553(a).
    8.2. 44 U.S.C. §1505(a)(1).
  9. Regulations that pertain to OTHER than government employees or officers may not exceed the scope of these statute. U.S. v. Calamaro, 354 U.S. 351, 77 S.Ct. 1138 (U.S. 1957)
  10. When a regulation DOES exceed the scope of the statute, its application is limited EXCLUSIVELY to "persons" WITHIN the department of the Secretary who wrote the regulation that exceeds the scope of the statute. 5 U.S.C. §301.
  11. When a regulation imposes a duty not specifically identified in the statute, the civil status that it is imposed upon is an employee or officer of the Secretary of the Department or the Agency that published the regulation, and not a private human being. For instance, 26 C.F.R. §1.1-1(a) imposes a tax obligation upon "citizens and residents" nowhere found in the Internal Revenue Code in 26 U.S.C. §1 that it implements. Thus, those two civil statuses are voluntary employees of the Department of the Treasury.
  12. As a matter of equal protection and equal treatment (Form #05.033), YOU as a human being have the SAME right to use the SAME tactics against the government with YOUR absolutely owned private property that they use against you to enslave you. In commercial terms, this means that you should NEVER be a Buyer of government services or property under the U.C.C. and must ALWAYS approach the government ONLY as a "Merchant" under the U.C.C. who makes all the rules. Fight fire with fire!
    “The State in such cases exercises no greater right than an individual may exercise over the use of his own property when leased or loaned to others. The conditions upon which the privilege shall be enjoyed being stated or implied in the legislation authorizing its grant, no right is, of course, impaired by their enforcement. The recipient of the privilege, in effect, stipulates [CONSENTS!, Form #05.002] to comply with the conditions. It matters not how limited the privilege conferred, its acceptance implies an assent to the regulation of its use and the compensation for it.”
    [Munn v. Illinois, 94 U.S. 113 (1876) ]
  13. Based on the previous step, civil statutes under a public franchise in effect, function as what the U.S. Supreme Court calls "the conditions of the grant or loan" of government property. Nearly all civil statutes fall in that category. See:
    13.1. Why Statutory Civil Law is Law for Government and Not Private Persons, Form #05.037 (OFFSITE LINK)
    13.2. Proof That There Is a "Straw Man", Form #05.032 (OFFSITE LINK)

Further information on the above is contained in:

  1. How You Voluntarily Surrender Your Constitutional/Private Rights to Become a Privileged Government “Straw Man”/Public Officer
  2. Federal Enforcement Authority Within Status of the Union, Form #05.032 (OFFSITE LINK)-SEDM
  3. How Scoundrels Corrupted Our Republican Form of Government

[Ability of the Government to Regulate or Enforce and the Need for Implementing Regulations, SEDM; SOURCE:]

Federal Register Document Drafting Handbook-National Archives and Records Administration

26 U.S.C. 7805:  Rules and regulations

Subtitle F - Procedure and Administration
Subchapter A - Application of Internal Revenue Laws

Sec. 7805. Rules and regulations

(a) Authorization

Except where such authority is expressly given by this title to any person other than an officer or employee of the Treasury Department, the Secretary shall prescribe all needful rules and regulations for the enforcement of this title, including all rules and regulations as may be necessary by reason of any alteration of law in relation to internal revenue.

44 U.S.C. 1505:  Documents to be published in the Federal Register

TITLE 44 > CHAPTER 15 > Sec. 1505.

Sec. 1505. - Documents to be published in Federal Register

(a) Proclamations and Executive Orders; Documents Having General Applicability and Legal Effect; Documents Required To Be Published by Congress.

There shall be published in the Federal Register -

(1)  Presidential proclamations and Executive orders, except those not having general applicability and legal effect or effective only against Federal agencies or persons in their capacity as officers, agents, or employees thereof;

(2) documents or classes of documents that the President may determine from time to time have general applicability and legal effect; and

(3) documents or classes of documents that may be required so to be published by Act of Congress.

For the purposes of this chapter every document or order which prescribes a penalty has general applicability and legal effect.

26 C.F.R. 601.702(a)(2)(ii) Effect of failure to publish in the Federal Register

26 C.F.R. 601.702 Publication and public inspection

(a)(2)(ii) Effect of failure to publish.  Except to the extent that a person has actual and timely notice of the terms of any matter referred to in subparagraph (1) of this paragraph which is required to be published in the Federal Register, such person is not required in any manner to resort to, or be adversely affected by, such matter if it is not so published or is not incorporated by reference therein pursuant to subdivision (i) of this subparagraph.  Thus, for example, any such matter which imposes an obligation and which is not so published or incorporated by reference will not adversely change or affect a person's rights.

5 U.S.C. 553(a)(2): Rule Making


553. Rule making

(a) This section applies, according to the provisions thereof, except to the extent that there is involved—

(1) a military or foreign affairs function of the United States; or

(2) a matter relating to agency management or personnel or to public property, loans, grants, benefits, or contracts.

IMPORTANT NOTE:  The above refers to REGULATIONS required to be published in the Federal Register.  Observe that anything relating to federal employment, personnel, public property, loans, grants, benefits, and contracts is NOT required to have implementing regulations published in the federal register.  Note also that all tax crimes and penalties do not have implementing regulations, which means that Subtitle A of the Internal Revenue Code only applies to government personnel, contracts, benefits, and public property and excludes anything else.  Click here for the implementing regulations worksheet that proves this.  This is VERY important!


"The Federal Income Tax Regulations (Regs.) are the official Treasury Department interpretation of the Internal Revenue Code."
[Internal Revenue Manual, [4.10]]

Internal Revenue Manual (I.R.M.), Section  Authority of Regulations  (05-14-1999)
Authority of the Regulations

  1. The Service is bound by the regulations. The courts are not.
  2. If both temporary and proposed regulations have been issued on the same Code section and the text of both are similar, examiners’ positions should be based on the temporary regulations because it can be cited as an authority for proposing an adjustment.
  3. When no temporary or final regulations have been issued, examiners may use a proposed regulation to support a position. Indicate that the proposed regulation has no authoritative weight, but is the best interpretation of the Code section available.

U.S. v. Bartrug, E.D.Va.1991, 777 F.Supp. 1290 , affirmed 976 F.2d 727, certiorari denied 113 S.Ct. 1659, 507 U.S. 1010, 123 L.Ed.2d 278

“Federal income tax regulations governing filing of income tax returns do not require Office of Management and Budget control numbers because requirement to file tax return is mandated by statute, not by regulation.” 

[U.S. v. Bartrug, E.D.Va.1991, 777 F.Supp. 1290 , affirmed 976 F.2d 727, certiorari denied 113 S.Ct. 1659, 507 U.S. 1010, 123 L.Ed.2d 278]

United States v. Levy, 533 F.2d. 969 (1976)

“When enacting 7206(1) Congress undoubtedly knew that the Secretary of the Treasury is empowered to prescribe all needful rules and regulations for the enforcement of the internal revenue laws, so long as they carry into effect the will of Congress as expressed by the statutes.  Such regulations have the force of law.  The Secretary, however, does not have the power to make law, Dixon v. United States, supra.” 

[United States v. Levy, 533 F.2d 969 (1976)]

U.S. v. Correll, 389 U.S. 299 (1967):

"[We] do not sit as a committee of revision to perfect the administration of the tax laws. Congress has delegated to the Commissioner, not to the courts, the task of prescribing "all needful rules and regulations for the enforcement" of the Internal Revenue Code. 26 U.S.C. 7805 (a). In this area of limitless factual variations, "it is the province of Congress and the Commissioner, not the courts, to make the appropriate adjustments."... The role of the judiciary in cases of this sort begins and ends with assuring that the Commissioner's regulations fall within his authority to implement the congressional mandate in some reasonable manner."

[U.S. v. Correll, 389 U.S. 299 (1967)]

Iglesias v. U.S., 848 F.2d 362, 366-67 (2d Cir. 1988)

“A regulation, however, may not serve to amend a statute, Koshland v. Helvering, 298 U.S. 441, 447, 56 S.Ct. 767, 770, 80 L.Ed. 1268 (1936), or to add to the statute "something which is not there." United States v. Calamaro, 354 U.S. 351, 359, 77 S.Ct. 1138, 1143, 1 L.Ed.2d 1394 (1957). As stated in Manhattan General Equipment Co. v. Commissioner, 297 U.S. 129, 134, 56 S.Ct. 397, 399, 80 L.Ed. 528 (1936):

The power of an administrative officer or board to administer a federal statute and to prescribe rules and regulations to that end is not the power to make law — for no such power can be delegated by Congress — but the power to adopt regulations to carry into effect the will of Congress as expressed by the statute. A regulation which does not do this, but operates to create a rule out of harmony with the statute, is a mere nullity. ”

[Iglesias v. U.S., 848 F.2d 362, 366-67 (2d Cir. 1988)]

Tax Procedure and Tax Fraud, West Publishing, Patricia T. Morgan, 1999, ISBN 0-314-06586-5

2.1  Treasury Regulations [pp. 11-12]

There are three types or classes of regulations governing federal tax matters:  legislative, interpretive, and procedural.  The first two types are promulgated by the Treasury Department, and are binding on the Treasury and the IRS, while procedural regulations are issued by the IRS and are not always binding on the agency.  The source of authority for a regulation determines its precedential value and the formality with which it must be adopted.

Section 553 of the Administrative Procedures Act requires that all "substantive" or legislative regulations be published in final form in the Federal Register at least 30 days prior to their effective date.  The purpose of this requirement is to give the public notice of the proposed rule and an opportunity to comment on it.  Although neither interpretive regulations nor procedural regulations are subject to these notice provisions, the Treasury Department follows the section 553 requirements when it promulgates interpretive regulations.  Regulations that have been proposed by the Treasury Department but not yet adopted as final are known as "proposed regulations."  For reasons such as substantial adverse public comment or internal disagreement within the Treasury about the wisdom of a particular proposed regulations, proposed regulations can languish for years in the status of merely proposed and not final rules.

An exception to the notice and comment procedures of section 553 exists for cases in which the agency believes the procedures are "impracticable, unnecessary, or contrary to the public interest."  Particularly in the recent past, the Treasury Department has frequently invoked this exception in promulgating temporary regulations for prompt guidance following significant tax legislation.  Temporary regulations are often issued in "question-and-answer" form, reflecting the Treasury Department's positions on the most obvious and frequently noted issues generated by the legislation.  Temporary regulations must also be issued as proposed regulations, but they expire if not finally adopted within three years of the date they are issued.

2.1.1  "Legislative" and "Interpretive" Regulations [pp. 12-13]

Section 7805(a) [of the Internal Revenue Code] directs the Treasury Secretary "or his delegate" to "prescribe all needful rules and regulations for the enforcement" of the Code.  Regulations promulgated under this grant of authority are known as "interpretive" (or "interpretative") regulations.  In addition to the blanket authority of section 7805(a), authority to issue regulations is often contained in specific sections of the Code.  When regulations are issued pursuant to such specific authorization or direction, they are "legislative" or "substantive" regulations that have the force and effect of law, unless they exceed the scope of the legislation or are unreasonable or were not issued according to prescribed procedures.


Procedural Regulations [pp. 23-24]

Regulations describing the organization of the IRS and its "housekeeping" rules are set forth in the IRS Statement of Procedural Rules, which is contained in 26 C.F.R. Part 601.  These regulations are preceded by "601" and are cited, for example, as "26 C.F.R. 601.509," to distinguish them from regulations issued by the Treasury Department.  Legislative and interpretive regulations, issued by the Treasury Department, are cited differently, and the number immediately following the symbol identifies the type of tax provision they implement.  Income tax regulations, for example, are preceded by a "1," and are cited as follows:  "Reg. 1.61" (which indicates a regulations under section 61 of the Code).  Procedural regulations are promulgated by the IRS, not the Treasury Department, and are not subject to the notice-and-comment requirements of the APA [Administrative Procedures Act].  Unlike legislative and interpretive regulations, procedural regulations may have retroactive effect.  I.R.C. 7805(b)(6).

Some regulations address matters of procedure, but are not "procedural regulations," as that term is defined above.  For example, rules establishing taxpayer obligations to file certain forms or furnish certain information are often included in interpretive regulations.  When such procedural matters are included in an interpretive or legislative regulation, the Treasury Department follows the APA notice-and-comment rules and the regulations are not "procedural," although they cover matters of procedure.  Similarly, regulations interpreting the administrative and procedural sections of the Code, which are cited as "Reg. 301.6001" et seq., are treated as interpretive regulations.

While legislative and interpretive regulations are binding authority for both the Service and taxpayers, the Service will not always be bound by its procedural rules.  The Internal Revenue Manual is a lengthy volume of procedures prescribed by the IRS as procedural regulations to be followed by IRS personnel.  Generally, procedural rules that affect individuals' rights will be binding on an agency, even if the rules are stricter than the law otherwise requires.  Morton v. Ruiz (S.Ct.1974).  However, where the procedural regulation was not relied on by the individual, and it had no effect on his conduct, failure by the IRS to comply with the procedural rule does not require that the evidence obtained in violation of the rule be suppressed.  United States v. Caceres (S.Ct.1979) (failure to follow procedures in Internal Revenue Manual).  Generally, it appears that if the right granted under the procedure is relatively unimportant, and if the relief necessary to correct the failure by the IRS to comply is relatively harsh, there is little likelihood that the taxpayer's challenge to the IRS action will be sustained.

All Internal Revenue Code Subtitle F regulations are not applicable to ALL subject matter taxes!

IMPORTANT!  A Part 301 Regulation, by itself, has no legal force to promulgate or implement Part 1 "Income Tax" provisions.  A Part 301 Regulation is merely a cross reference added, in the interest of completeness, not as the lawful "authority".

If you wanted to find a regulation that applies to Willful Failure to File criminal penalty found in 26 U.S.C. 7203 to the income tax found in Subtitle A, section 1, then the regulation would have to look like 26 C.F.R. 1.7203.  However, there IS no such regulation so there can be no criminal violation for failure to file!

26 C.F.R. Part 301 did not appear in the 1954 regulations.  The first time Part 301 mysteriously appeared was in a specially published 1961 edition of C.F.R. Title 26.  The Preface to these Regulations solved the mystery of the origin of Part 301, stating:

"Title 27 (Alcohol, Tobacco, and Firearms), formerly included...Part 300 to the end..."

What Particular Types of Taxes were these "Procedures and Administration" applicable to?  Alcohol, Tobacco, and Firearms!  Part 301 was NOT written for the Title 26 Voluntary Income Taxes!  There Part 300+ provisions carry severe penalties for noncompliance, because Alcohol, Tobacco, and Firearms Tax is a "regulated" revenue taxable industry imposing a Mandatory Tax upon which criminal sanctions and property seizures could be imposed!

The "Publisher's Notice," which was added to the first page of the 1954 microfiche of the CFR, after its publication, makes a reference to this suspicious 1961 alteration, stating:

"No Federal Register citation covering this change was discoverable."

Again, the IRS cannot lawfully impose civil and criminal penalties on a voluntary tax because noncompliance is one of the options!  That is why there is nowhere in the Regulations that a Part 1 Voluntary Tax cross references to a 301 Regulation applicable to penalties, interest, levies, seizures, or summons!

Any attempted enforcement by the IRS of a Code relating to a voluntary income tax, without a Part 1 Implementing Regulation, is a denial of due process for the American Citizen.  Examine the Parallel Table of Authorities for further information at:

or look at the local copy of this table by clicking here if you can't get to the government's copy.

U.S. v. Mersky, 361 U.S. 431 (1960):  The Code  and the accompanying Treasury Regulation TOGETHER form the law.  When one exists without the other, the result is a nullity and imposes NO DUTY on the Citizen!

"An administrative regulation, of course, is not a "statute." While in practical effect regulations may be called "little laws," 7 they are at most but offspring of statutes. Congress alone may pass a statute, and the Criminal Appeals Act calls for direct appeals if the District Court's dismissal is based upon the invalidity or construction of a statute. See United States v. Jones, 345 U.S. 377 (1953). This Court has always construed the Criminal Appeals Act narrowly, limiting it strictly "to the instances specified." United States v. Borden Co., 308 U.S. 188, 192 (1939). See also United States v. Swift & Co., 318 U.S. 442 (1943). Here the statute is not complete by itself, since it merely declares the range of its operation and leaves to its progeny the means to be utilized in the effectuation of its command. But it is the statute which creates the offense of the willful removal of the labels of origin and provides the punishment for violations. The regulations, on the other hand, prescribe the identifying language of the label itself, and assign the resulting tags to their respective geographical areas. Once promulgated, [361 U.S. 431, 438]   these regulations, called for by the statute itself, have the force of law, and violations thereof incur criminal prosecutions, just as if all the details had been incorporated into the congressional language. The result is that neither the statute nor the regulations are complete without the other, and only together do they have any force. In effect, therefore, the construction of one necessarily involves the construction of the other."

[U.S. v. Mersky, 361 U.S. 431 (1960)]

Calif. Bankers Assoc. v. Shultz, 416 U.S. 25, 44, 39 L.Ed.2d. 812, 94 S.Ct 1494.

"...the Act's civil and criminal penalties attach only upon violation of the regulation promulgated by the Secretary; if the Secretary were to do nothing, the Act itself would impose no penalties on anyone...The Government urges that since only those who violate these regulations [not the Code] may incur civil or criminal penalties, it is the actual regulations issued by the Secretary of the Treasury, and not the broad authorizing language of the statute, which are to be tested against the standards of the Fourth Amendment; and that when so tested they are valid."

[Calif. Bankers Assoc. v. Shultz, 416 U.S. 25, 44, 39 L.Ed. 2d 812, 94 S.Ct 1494]

California Bankers Ass'n v. Shultz, 416 U.S. 21, 26, 94 S.Ct. 1494, 1500, 30 L.Ed. 2812

"The reporting act is not self-executing; it can impose no duties until implementing regulations have been promulgated". 

[California Bankers Ass'n v. Shultz, 416 U.S. 21, 26, 94 S.Ct. 1494, 1500, 30 L.Ed. 2812]

Bowen v. Georgetown Univ. Hosp., 488 U.S. 204, 208 (1988)

"[i]t is axiomatic that an administrative agency's power to promulgate legislative regulations is limited to the authority delegated by Congress"

[Bowen v. Georgetown Univ. Hosp., 488 U.S. 204, 208 (1988)]

INS v. Chadha, 462 U.S. 919, 953 n.16, 955 n.19 (1983) provides that agency action. . .

"is always subject to check by the terms of the legislation that authorized it; and if that authority is exceeded it is open to judicial review"

"Congress ultimately controls administrative agencies in the legislation that creates them")

[INS v. Chadha, 462 U.S. 919, 953 n.16, 955 n.19 (1983)]

U.S. v. Calamaro, 354 U.S. 351, 77 S.Ct. 1138 (U.S. 1957)

Finally, the Government points to the fact that the Treasury Regulations relating to the statute purport to include the pick-up man among those subject to the s 3290 tax,FN11 and argues (a) that this constitutes an administrative interpretation to which we should give weight in construing the statute, particularly because (b) section 3290 was carried over in haec verba into s 4411 of the Internal Revenue Code of 1954, 26 U.S.C.A. s 4411. We find neither argument persuasive. In light of the above discussion, *359 we cannot but regard this Treasury Regulation as no more than an attempted addition to the statute of something which is not there. FN12 As such the regulation can furnish no sustenance to the statute. Koshland v. Helvering, 298 U.S. 441, 446-447, 56 S.Ct. 767, 769-770, 80 L.Ed. 1268. Nor is the Government helped by its argument as to the 1954 Code. The regulation had been in effect for only three years,FN13 and there is nothing to indicate that it was ever called to the attention **1144 of Congress. The re-enactment of s 3290 in the 1954 Code was not accompanied by any congressional discussion which throws light on its intended scope. In such circumstances we consider the 1954 re-enactment to be without significance. Commissioner of Internal Revenue v. Glenshaw Glass Co., 348 U.S. 426, 431, 75 S.Ct. 473, 476, 99 L.Ed. 483.

FN11. Treas.Reg. 132, s 325.41, Example 2 (26 CFR, 1957 Cum. Pocket Supp.), which was issued on November 1, 1951 (16 Fed.Reg. 11211, 11222), provides as follows:

‘B operates a numbers game. He has an arrangement with ten persons, who are employed in various capacities, such as bootblacks, elevator operators, newsdealers, etc., to receive wagers from the public on his behalf. B also employs a person to collect from his agents the wagers received on his behalf.

‘B, his ten agents, and the employee who collects the wagers received on his behalf are each liable for the special tax.’

FN12. Apart from this, the force of this Treasury Regulations as an aid to the interpretation of the statute is impaired by its own internal inconsistency. Thus, while Example 2 of that regulation purports to make the pick-up man liable for the s 3290 occupational tax, Example 1 of the same regulation provides that ‘a secretary and bookkeeper’ of one ‘engaged in the business of accepting horse race bets' are not liable for the occupational tax ‘unless they also receive wagers' for the person so engaged in business, although those who ‘receive wagers by telephone’ are so liable. Thus in this instance a distinction seems to be drawn between the ‘acceptance’ of the wager, and its ‘receipt’ for recording purposes. But if this be proper, it is not apparent why the same distinction is not also valid between a writer, who ‘accepts' or ‘receives' a bet from a numbers player, and a pick-up man, who simply ‘receives' a copy of the slips on which the writer has recorded the bet, and passes it along to the banker.

FN13. See note 11, supra.

[U.S. v. Calamaro, 354 U.S. 351, 77 S.Ct. 1138 (U.S. 1957)]

United States v. Murphy, 809 F.2d 142, 1431:

"Although the relevant statute authorized the Secretary to impose such a duty, his implementing regulations did not do so.  Therefore we held that there was no duty to disclose..." 

[United States v. Murphy, 809 F.2d 142, 1431]

Curley v. United States, 791 F.Supp. 52:

"Failure to adhere to agency regulations [by the IRS or other agency] may amount to denial of due process if regulations are required by constitution or statute..."

[Curley v. United States, 791 F.Supp. 52]

Dodd v. United States, 223 F Supp 785:

“...for federal tax purposes, federal regulations govern.” 

[Dodd v. United States, 223 F Supp 785]

1 C.F.R. 21.21(c):  Agencies may NOT use regulations of another agency:

Subpart A--General
Sec. 21.21 General requirements: References.


(c) Each agency shall publish its own regulations in full text. Cross-references to the regulations of another agency may not be used as a substitute for publication in full text, unless the Office of the Federal Register finds that the regulation meets any of the following exceptions:  

(1) The reference is required by court order, statute, Executive order or reorganization plan.  

(2) The reference is to regulations promulgated by an agency with the exclusive legal authority to regulate in a subject matter area, but the referencing agency needs to apply those regulations in its own programs.  

(3) The reference is informational or improves clarity rather than being regulatory.  

(4) The reference is to test methods or consensus standards produced by a Federal agency that have replaced or preempted private or voluntary test methods or consensus standards in a subject matter area.  

(5) The reference is to the Department level from a subagency. [37 FR 23611, Nov. 4, 1972, as amended at 50 FR 12468, Mar. 28, 1985]