FIL ED U.S. COURT OF APPEAL S EL EVENTHCI RCUI T SEPT 24, 2008 THOMAS K. KAH

N CL ERK [PUBLIS H] IN THE UN ITED STATES COURT OF APPEALS FOR THE ELE VENTH CIRCUIT

__ __ __ __ __ __ __ __ __ __ __ __ No. 0 7- 13 16 7

__ __ __ __ __ __ __ __ __ __ __ _ D. C. Dock etNo. 0 5- 01 25 3- CV-ORL-1 8- KRS PATRICK H. W RIGHT, Pl ai nt iff -Ap pe ll an t, ve rs us MARK W. EVERSON, Defen da nt , UNITED STAT ES OF AMERIC A, Defen da nt -Ap pe ll ee.

__ __ __ __ __ __ __ __ __ __ __ __ App eal fro m

th e Uni te d S ta te s Di st ric t Co urt fo r th e Mi dd le Dis tri ctof F lo rid a

__ __ __ __ __ __ __ __ __ __ __ __ _ (Sep te m be r 24 , 20 08 ) ON PETI TI ON FOR REHE ARING Befo re BI RCH an d DUBI NA, Circ ui t J ud ge s, an d GOLDBERG, Ju dg e. *
Honora ble Richard W. Goldberg , United States Court of International Trade J udg e, * sitti ngby designation.PER CURI AM:

The pre vi ou s o pi ni onis su edinth is cas e, Wrig htv. Ev ers on , F.3d, 200 8 W L 35 80 59 1 (1 1t h C ir. Au g. 1 5, 2 00 8) , is he reb y VACATED. In i ts pl ace, o n pe ti ti on forreh eari ng , we fil e th is rev is edop in io n. Th e p et it io n fo r reh eari ng is ot he rwis e DENIED. Patric k H. Wrig ht(“ Wrig ht ”) ap pe al s fr om th e d is tri ctco urt’s g ran t o f su m m ary jud gm en t i n favo r of th e g ov ern m en t o n h is de cl arat ory jud gm en t ac ti on . Wrig htch al le ng edth e v al id it y of 3 1 C .F.R. § 1 0.7 (c)( 1) (v ii i), c la im in g tha t i t un la wfu ll y

an d a rb it rari ly lim it s h is rig htto rep res en t t ax pa y ers be fo re the Int ern al Rev enue Serv ic e (“ IRS” ). The d is tri ctco urt fo un d t ha t 3 1 C .F.R. §1 0.7 (c)( 1) (v ii i) is va li d, b ecau se itis a reas on ab le reg ul at io n p ro m ul ga te d b y

th e IRS pu rs uantto anex pr es s d el eg at io n o f au th or it y fro m Co ng res s u nd er 3 1 U.S.C. § 33 0( a)(1 ), an d th atitis no t arbi tra ry , cap ric io us , or m an ife st ly con tra ry to th e st atut e. Upo n rev ie w of the reco rdan d t he pa rti es ’ br ie fs , andwith the be ne fitof o ral arg um en t, we AFFIR M. I. BACKG ROUND Wrig htserve d a s a r ev enue off ic er wi th th e IRS fro m

19 81 to 19 83 . He th enbe cam e a s el f-em

pl oyed t ax co ns ul tant , andhe is reg is te redwith t he IRS as an“un en ro ll ed ” ta x re turnpre pa rer. Wrig htpro vi de s v ari ou s s erv ic es in cl ud in g: 2pr ep ari ng an d fi li ng tax returns ; ad vi si ng cli en ts en ga ge d i n p ro sp ect iv e o r

on go in g t ax is su es with t he IRS; reque st in g IR S tr an sc rip ts an d i nt erp ret at io ns whe n re pr es en ti ng cli en ts be fo re the IRS; fil in g h ard sh ip ap pl ic at io ns with t he Offi ce o f th e Tax pa y er Advo cat e; fil in g o ffer s i n c om pr om is e an d re fundcla im s; an d re pr es en ti ng cli en ts inin te rv ie ws wi thth e IRS . Wrig htst at edth athe ha s ro ut in el y sec ur edpo wers of a tt orne y an d t ax in fo rm at io n aut ho riz at io ns fro m hi s cl ie nt s, wh ic h autho riz e h im to rep res en t h is cli en ts be fo re the IRS. Si nc e 1 99 8, ho wev er, IRS off

ic ers an d e m

pl oyees o fte n h av e ref

us edWrig htpe rm is si on to rep res en t cl ie nt s i n m at te rs be fo re the IRS b ecau se he is no t a “ pr act it io ne r” as th at te rm is de fin edby 31 C .F.R. § 1 0.2 (a). Thro ug h c ou ns el , Wrig htfil eda de cl arat ory jud gm en t ac ti on pu rs ua ntto 28 U.S.C. § 2 20 1, ch al le ng in g t ha t 3 1 C .F.R. §1 0.7 (c)( 1) (v ii i) u nl awfu ll y an d arb it rari ly lim it edhi s ab il ity to rep res en t t ax pa y ers be fo re the IRS. Acco rd in g t o Wrig ht , th e IRS vi ol at edhi s co ns ti tu ti on al du e p ro ces s ri gh ts an d 2 6 U.S.C. § 75 21 by pro m

ul ga ti ng , app lying , andim pl em en ti ng 31 C.F.R. § 10 .7(c )(1 )(v ii i), whi chres tri ct s t o “pr act it io ne rs ” th e ab il it y to rep res en t a t ax pa y er b efo re ap pe al s of fic ers , rev enue off

ic ers , cou ns el , or s im il ar o ffi cers or e m pl oyees. Wrig ht co nt en de d t ha t 3 1 C .F.R § 10 .7(c )(1 )(v ii i) c on tra ve ne d t he st atut ory requi rem en t of 26 U.S.C. § 7 52 1, en act edin19 88 , “ th atth e ta xp ay er b e ab le to ha ve a pe rs on 3pe rm it te d t o p ract ic e rep res en t h im inan y in te rv ie w.” R-1 9 a t 6 . Wrig ht
m ai nt ai ns th ata rep res en ta ti ve m ay be adm it te d t o p ract ic e b efo re the IRS i f he ha s a g oo d c ha ract er an d re pu ta ti on , th e n eces sa ry qu al ifi cat io ns , andis co m pe te nt . He so ug hta de cl arat io n t ha t h e was en ti tl edto rep res en t t ax pa y ers pu rs ua ntto th e Uni te d S tate s C on st itut io n, 2 6 U.S.C. § 75 21 , 31 U.S.C. § 3 30 , th e In te rn al Rev enue Co de an d R eg ul at io ns , andth e In te rn al Rev enue Man ua l, an d t ha t the IRS h as un co ns ti tu ti on al ly int erp ret edrel ev an t s ta tu te s an d e nf or cedcert ai n reg ul at io ns . Wrig htarg ue d t ha t 3 1 C .F.R. § 1 0.7 (c)( 1) (v ii i) i s an in te rp ret iv e reg ul at io n, rathe r th ana le gi sl at iv e reg ul at io n, b ecau se , whi le Co ng res s ex pl ic it ly autho riz ed th e Sec ret ary to reg ul at e th e p ract ic e o f pe rs on s b efo re the IRS, Co ng res s’s de le ga ti onwas b ro adan d u ns pe ci fic . As a res ul t, h e co nt en de d t ha t the reg ul at io n was en ti tl edto de fere nc e und er Ch ev ro n U.S.A., In c. v. Natur al Res ou rces Defen se Co un ci l, In c., 46 7 U.S. 8 37 , 10 4 S . Ct. 2 77 8 (1 98 4) , on ly if it im pl em en te d t he in te ntof C on gr es s i n areas on ab le m an ne r. Acco rd in g t o Wrig ht , th e reg ul at io n was un reas on ab le be cau se no leg it im at e b as is ex is te d fo r tr eat in g a n un en ro ll edtax pre pa rer d iff eren tl y fro m ot he r un en ro ll edrep res en ta ti ve s. He as se rte d tha t n on e o f th e res tri ct io ns pro vi de d i n 3 1 C .F.R. § 1 0.7 (c)( 1) (v ii i) r el at e to kn owl ed ge , edu cat io n, trai ni ng , or e xp eri en ce, an d t he on ly restric ti on on ot he r 4un en ro ll edrep res en ta ti ve s re qu ire d t he m to ha ve a sp eci al rel at io ns hi p wi th th e ta xp ay er. Wrig htfurth er n ot edth at31 C.F.R. § 10 .7(c ) pe rm it s a t axpa y er t o b e rep res en te d b y

animm ed ia te fam il y

m em be r, anem

pl oyer to be rep res en te d b y an em pl oyee, an i nd iv idua l t o re pr es en t an in di vi du al or e nt it y ou ts id e th e Uni te d St at es when th e rep res en ta ti onoc cu rredou ts id e th e Uni te d S ta te s, an d t ha t the se di sp ari ti es inwho co ul d re pr es en t a t ax pa y er were no t ju st ifi ed . Wrig htco nc ed ed th atun de r 5 U.S.C . § 5 00 an d 3 1 U.S.C. § 33 0, the Secr et ary of th e Treas ury (“ Secr et ary”) cou ldco m

pl et el y pro hi bi t al l p ers on s o th er tha n a tt orne y s an d cert ifi edpubl ic acco un ta nt s (“ CPAs ”) fro m pra ct ic in g b efo re the IRS, b uthe arg ue d t ha t the Secr et ary ha d n otdo ne so be cau se 26 U.S.C. § 7 52 1 o pe rat ed“ to pr ev en t the Secr et ary fro m in te rfer in g wi th th e rep res en ta ti on of atax pa y er b y an y pe rs on pe rm it te d t o p ract ic e who m th e ta xp ay er au th or iz es to rep res en t h im .” R1
- 19 at 1 7. Wrig htpo si te d tha t i f he was fo un d t o b e in co m pe te ntas a rep res en ta ti ve , th e IRS co ul d s us pe ndor d is ba r hi m pu rs ua ntto 31 U.S.C. § 33 0( b) an d 3 1 C .F.R. § 1 0.5 0, b utco ul d n otcir cu m ve nt26 U.S.C. § 7 52 1 a nd pr ecl ud e h im

fro m pra ct ic in g b efo re the IRS i n t he na m e o f pr ot ect in g t ax pa y ers . The g ov ern m en t re sp on de d t ha t Co ng res s h as no t s po ke n o n t he qu es ti on s of who , inad di ti on to att orne y s an d C PAs, ca n re pr es en t a t ax pa y er b efo re the IRS, an d wh ethe r an d wh ena ta x p rep arercanrep res en t a t ax pay er b efo re the IRS. 5The go ve rn m en t m ai nt ai ne d t ha t the Secr et ary’ s au th or it y to is su e reg ul at io ns reg ard in g t ax pa y er re pr es en ta ti on aro se fro m 31 U.S.C. § 3 30 , no t 2 6 U.S.C. § 75 21 . Evenso , th e g ov ern m en t ar gu edth atun de r § 7 52 1, the lan gu ag e “ an y ot he r pe rs on pe rm it te d t o re pr es en t the tax pa y er b efo re the Int ern al Rev enue Serv ic e” do es no t es tabl is h t ha t an y pe rs on with awrit te n p owe r of att orne y canrep res en t a ta xp ay er b efo re the IRS, an d n o c on fli ctex is ts be twee n § 75 21 an d app li cab le reg ul at io ns . The g ov ern m en t as se rte d fu rth er tha t the reg ul at io ns de fin e “ th os e ‘oth er p eo pl e’ who are p erm itte d t o e ng ag e in su chrep res en tati on .” R-2 1 a t 5 . The go ve rn m en t as se rts th atth e reg ul at io ns at i ss ue are l eg is la ti ve , andno t in te rp ret iv e, be cau se Co ng res s ex pr es sl y gra nt edto th e Sec ret ary th e au th or it y to reg ul at e who m ay

actas arep res en ta ti ve be fo re the IRS i n 3 1 U.S.C. § 33 0. Fu rth er, the go ve rn m en t m ai nt ai ns th at , if Co ng res s h adin te nd edth ata ta xp ay er co ul d c ho os e an y on e to rep res en t h im be fo re the IRS, Co ng res s wo ul d n otha ve de le ga te d aut ho rit y

to th e Sec ret ary to reg ul at e p ract ic e b efo re the IRS. The go ve rn m en t ar gu edth atth e reg ul at io ns are n otarb it rary or cap ric io us be cau se th ey he lp to en su re tha t t ax pay ers are re pr es en te d b y qu al ifi edin di vi du al s, wh ic h be ne fit s the tax pa y ers , th e IRS , andth e g en eral publ ic . The g ov ern m en t ackno wled ge d t ha t s om e la y rep res en ta ti ve s, s uc h a s an imm ed ia te fam il y m em be r orful l-t im e em

pl oyee, m ay

rep res en t t ax pa y ers du rin g the au di t o f a return

6pr ep aredby the rep res en ta ti ve , bu t the y m ay no t re pr es en t a t ax pay er i n t he un fet te redm an ne r so ug htby W rig htforhi m se lf. Th e g ov ern m en t s ub m it te d t ha t th e sp eci al rel at io ns hi p b etweenth es e la y rep res en ta ti ve s an d t he tax pa y er in crea se s the li ke li ho odof f ai r rep res en ta ti on , warn edof t he da ng ers of p erm it ti ng in co m pe te ntor u ns crupu lo us lay repre se nt at iv es to setup co tt ag e ta x i ndus tri es , an d n ot edth atth e cu rren t re gu lato ry sch em e p ro te ct s the in te gr it y of t he rev enue syste m whi le pro te ct in g t he publ ic an d p ro vi di ng op ti on s t o e m pl oy les s ex pe ns iv e rep res en ta ti ve s tha n l ic en se d p ro fes si on al s. Th e g ov ern m en t al so no te d t ha t Wrig htco ul d app ly to b eco m e anen ro ll edag en t, wh ic h wo ul d p erm ithi m to en ga ge ina br oa de r sc op e o f rep res en ta ti on . The di stric t co urt d en ie d Wrig ht ’s m ot io n fo r su m m ary jud gm en t an d gr an te d t he go ve rn m en t’s m ot io n fo r su m m ary jud gm en t. The di st ric t co urt fram edth e is su e b y

st at in g t ha t Wrig htso ug hta de cl arat io n t ha t 3 1 C .F.R. § 10 .7(c )(1 )(v ii i) wa s v oi d, an d t he go ve rn m en t’s i nt erp ret at io n o f certa in st atut es an d e nf or cem en t o f rel ev an t re gu la ti on s was un co ns ti tu ti on al . The d is tri ctco urt fo un d tha t Co ng res s h adno t s po ke n d ire ct ly on wh ethe r anun en ro ll edag en t co ul d rep res en t t ax pa y ers inan y pro ceed in g. Acco rd in g t o t he di stric t co urt, 3 1 C .F.R. § 10 .7(c )(1 )(v ii i) i m

pl em en ts 31 U.S.C. § 3 30 , andth e la tt er g ran ts au th or it y to th e Secr et ary to reg ul at e th e p ract ic e o f rep res en ta ti ve s. Alt ho ug h 3 1 U.S.C. § 33 0 i s 7subjec t t o 5 U.S.C. § 5 00 , sec ti on 50 0 n ot es on ly tha t at to rn ey s an d C PAs m ay

rep res en t i nd iv idua ls be fo re the IRS. The di stric t co urt re jecte d Wrig ht ’s arg um en t tha t 2 6 U.S.C. § 75 21 (a)( 1) pe rm it s anun en ro ll edag en t t o re pr es en t a ta xp ay er i n a ny int erv ie w. The di stric t co urt n ex t ad dr es se d wh ethe r Co ng res s d el eg at edauth or it y to th e Sec ret ary to de ci de whet he r anun en ro ll edag en t m ay rep res en t a t ax pa y er i n an y pro ceed in g. Th e co urt fo un d t ha t Co ng res s ex pr es sl y de le ga te d t o t he Secr et ary th e au th or it y

to reg ul at e th e p ract ic e o f ta xp ay er re pr es en tati ve s an d, th eref or e, th e ch al le ng edreg ul at io n was leg is la ti ve . Accor di ng ly, th e co urt rev ie wedth e reg ul at io n t o d et erm in e whe th er the reg ul at io n was arb it rary, cap ric io us , or m an ife st ly con tra ry to st atut e, an d n otforreas on ab le ne ss . The co urt fo un d tha t the reg ul at io n was no t arbi tra ry , cap ric io us , or m an ife st ly con tra ry to st atut e b ecau se (1) itaim edto pro te cttax pa y ers an d t he in te gr it y of t he in te rn al rev enue syste m ; (2 ) a rep res en ta ti ve co ul d d em on strat e h is qu al ifi cat io ns th ro ug h th e en ro ll m en t p ro ces s an d an e nr ol le d a ge ntco ul d re pr es en t t ax pa y ers inan y pr oc eed in g b efo re the IRS; (3) tre as ury reg ul at io ns th atha ve co nt in ue d wi th ou t subs ta nt ia l ch an ge ov er a l on g p eri odof t im e are de em edto ha ve rece iv ed co ng res si on al ap pr ov al an d h av e th e effe ctof l aw; ( 4) 31 U.S.C. § 3 30 gi ve s the Secr et ary th e au th or it y

to de te rm in e who m ay

pra ct ic e; an d (5 ) 26 U.S.C. § 7 52 1 8do es no t d efi ne who is pe rm it te d t o p ract ic e. The c ou rt f urth er fo un d t ha t 3 1 C.F.R. § 10 .7(c )(1 )(v ii i) wa s re as on ab le , no ti ng th atth e g ov ern m en t p res en te d le gi ti m at e rea so ns to tre atun en ro ll edtax pre pa rers di ffer en tl y fro m ot he r un en ro ll edrep res en ta ti ve s. Th e d is tri ctco urt en te redit s fi na l ju dg m en t o n M ay 20 07 , andWrig ht , pro se, t im el y ap pe al ed . II . DISCUSSI ON At i ss ue inth is cas e is whet he r Wrig ht , who is no t an att orne y , CPA, en ro ll edag en t, o r en ro ll edactuary , bu t wh o i s “ an y ot he r pe rs on pe rm it te d t o rep res en t the tax pa y er” a s d es cri be d b y 26 U.S.C. § 7 52 1( b) an d (c ), is pe rm it te d to rep res en t t ax pa y ers be fo re the IRS u nd er 3 1 C .F.R. § 1 0.7 (c)( 1) (v ii i), andth e ex te ntof h is au th or it y

to rep res en t t ax pa y ers un de r 26 U.S.C. § 7 52 1( c). Thi s i s anis su e o f fi rs t i m

pr es si on inou r ci rcu it . W e rev ie w de n ov o adi st ric t co urt’s i nt erp ret at io n o f un de rlyin g que st io ns of law. Ma jor Leag ue Bas eb al l v . Cri st , 33 1 F .3d11 77 , 11 83 (11 th Cir . 20 03 ). W e rev ie w de n ov o adi st ric t co urt’s g ran t o f a m ot io n fo r su m m ary jud gm en t. Beg ne r v. Un it edSta te s, 4 28 F.3d99 8, 1 00 1 (1 1th C ir. 2 00 5) . “ Su m m ary jud gm en t i s p ro pe r if

, when vi ewin g t he ev id en ce i n t he li gh t m os t fa vo rab le to th e no n- m ov in g p arty , th ere i s n o g enui ne is su e o f m at eri al factan d t he m ov in g p arty

9is en ti tl edto jud gm en t as a m at te r of law.” Si erraClub, In c. v. Lea vi tt , 48 8 F .3d 90 4, 9 11 (11 th Cir . 20 07 ).

“ Whe n aco urt re vi ews anag en cy ’s con st ru ct io n o f th e st atut e whi chit adm in is te rs , itis co nf

ro nt edwith t wo que st io ns .” Ch ev ro n, 4 67 U.S. at 8 42 , 10 4 S. Ct . at 2 78 1. Fi rs t, al way s, i s the qu es ti on whet he r Co ng res s h as di rect ly spo ke n t o th e p reci se qu es ti on at i ss ue . If th e in te ntof C on gr es s i s cl ear, tha t i s th e en d o f th e m at te r; f

orth e co urt, as well as t he ag en cy , m us t g iv e effe ctto th e una m

bi gu ou sl y ex pr es se d i nt en t o f Co ng res s. If, ho wev er, the co urt d et erm in es Co ng res s h as no t d ire ct ly addres se d th e p reci se qu es ti on at i ss ue , th e co urt d oe s n otsi m pl y im po se it s o wn co ns tru ct io n o n the st atut e, as wou ldbe ne ces sa ry inth e ab se nc e o f anadm in is tra ti ve in te rp ret at io n. Ra th er, i f th e st atut e is si le ntor am bi gu ou s wi th res pe ctto th e sp eci fic is su e, th e que st io n fo r th e co urt i s wh ethe r th e ag en cy ’s ans wer i s b as edon a pe rm is si bl e co ns tru ct io n o f th e st atut e. Id . at 8 42 -4 3, 1 04 S. Ct. at27 81 -8 2 (f oo tn ot es om it te d) . If Co ng res s ex pl ic it ly le av es a gap i n ast atut e fo r anag en cy to fil l, “ th ere i s an ex pr es s d el eg at io n o f au th or it y to th e ag en cy

to elu ci da te a sp eci fic pro vi si on of t he st atut e b y reg ul at io n.” Id. at84 3- 44 , 10 4 S . Ct. at27 82 . A resu lt in g re gu lati on is rev ie wed on ly to s ee i f itis arb it rary, capri ci ou s, o r m an ife st ly con tra ry to th e st atut e. Id . at 84 4, 1 04 S. Ct. at27 82 . An ag en cy

rul e is arb it rary andcap ric io us if the ag en cy rel ie d o n fa ct or s tha t Co ng res s d idno t i nt en d fo r itto co ns id er, “ en ti rel y fai le d t o c on si de r anim

po rta nt 10as pe ctof t he pro bl em , off eredanex pl an at io n fo r it s d eci si on th atrun s co un te r to th e ev id en ce b efo re the ag en cy , or i s s o i m pl au si bl e th atitco ul d n otbe asc rib edto a d iff eren ce i n v ie w or the pro du ctof a ge nc y ex pe rti se .” Mo to r Veh ic le Mfrs . Ass ’n of the U.S., Inc. v . Sta te Farm Mu t. Au to . Ins . Co., 4 63 U.S. 29 , 43 , 10 3 S . Ct . 28 56 , 28 67 (19 83 ). A revi ewin g c ou rt m ay no t s up pl y

a reas on edba si s fo r th e ag en cy ’s act io n t ha t the ag en cy ha s n otpro vi de d, al th ou gh th e co urt m ay up ho ld anag en cy

de ci si on if the ag en cy ’s pat h t o the de ci si on m ay be reas on ab ly de te rm in ed . Id. If a d el eg at io n i s i m pl ic it , bu t n otex pl ic it , th enrev ie w is for whe th er the res ul ti ng reg ul at io n i s a r eas on ab le in te rp ret at io n o f th e st atut e, an d

“ co ns id erab le weig htsh ou ldbe acco rd edto anex ecu ti ve de pa rtment’s co ns tru ct io n o f a s ta tu to ry sch em e itis en tru st edto adm in is te r.” Ch ev ro n, 4 67 U.S. at 8 44 , 10 4 S . Ct. at27 82 . Indi sc us si ng th e li m it s o f Ch ev ro n d efer en ce, the Supr em e Co urt h as he ld th atsu chde fere nc e is ap pr op ria te “whe n i t ap pe ars th atCo ng res s d el eg at ed au th or it y to th e ag en cy

ge ne ral ly to m ak e ru le s ca rry in g t he for ce o f la w, andth at th e ag en cy

in te rp ret at io n c la im in g d efer en ce was pro m ul ga te d i n t he ex erci se of th atau th or it y .” Uni te d S ta te s v . MeadCo rp ., 53 3 U.S. 2 18 , 22 6- 27 , 12 1 S . Ct. 21 64 , 21 71 (20 01 ). The C ou rt n ot edth ata de le ga ti on m ay be de m on st rat edin se ve ral way s, i nc lu di ng “ anag en cy ’s po wer t o e ng ag e in ad jud ic at io n and 11no ti ce-a nd -co m m en t ru le m ak in g, o r by so m e o th er i nd ic at io n o f a co m pa rab le co ng res si on al in te nt .” Id . at 2 27 , 12 1 S . Ct. at21 71 ; b utsee Ala. Po wer Co . v. U.S. Dep’t o f Ene rg y , 30 7 F .3d13 00 , 13 12 -1 3 (1 1t h C ir. 2 00 2) (no ti ng th ata se tt le m en t ag reem en t was far re m ov edfro m no ti ce-a nd -co m

m en t ru le m ak in g a nd an y ot he r ci rcu m st an ces reas on ab ly sug ge st in g t ha t Co ng res s tho ug htde fere nc e was pro pe r, bu t d ecl in in g t o d et erm in e whe th er Ch ev ro n d efer en ce was ap pr op ria te ). To d et erm in e whe th er 3 1 C .F.R. § 1 0.7 (c)( 1) (v ii i) i s v al id , we beg in by rev ie win g t he st atut e itim pl em en ts , 31 U.S.C. § 3 30 . Und er § 33 0, Co ng res s gr an te d t o t he Secr et ary th e ri gh t t o “ reg ul at e th e p ract ic e o f rep res en ta ti ve s o f pe rs on s b efo re the Depa rtment o f th e Treas ury ,” m an da ti ng th atth e Sec ret ary requi re re pr es en ta ti ve s t o d em on st rat e: “ (A) g oo d c ha ract er; (B) g oo d re pu ta ti on ; (C) n eces sa ry

qu al ifi cat io ns to en ab le th e rep res en tati ve to pro vi de to pe rs on s va lu ab le servi ce; an d (D) co m pe te nc y to advi se an d a ss is t p ers on s i n p res en ti ng th ei r cas es .” 31 U.S.C. § 3 30 (a)( 1) -(2 ). Und er 3 1 C .F.R. § 1 0.7 (c)( 1) , a 1
no n- pr act it io ne r m ay

rep res en t a t ax pa y er b efo re the IRS i n c ert ai n c irc um st an ces ,

Congr ess also grante d the right to suspend or disbar fr om prac tice ce rtain individuals, 1 e.g ., those who violate a

pplicable r egulations, after notice and oppor

tunity for a hearing. 31 U.S.C. § 330(b). 12if h e p ro vi de s s at is fact ory id en ti fic at io n andpro of

of h is au th or it y

to rep res en t the ta xp ay er. Mo strel ev an t t o Wrig ht ’s app eal ,

2 [a]n i nd iv idua l wh o p rep ares an d s ig ns a ta xp ay er’s t ax return a s the pr ep arer , or wh o p rep ares a ta x re tu rnbu t i s n otrequi red(by the in st ru ct io ns to th e ta x re tu rnor r eg ul at io ns ) to si gn th e ta x re tu rn , m ay rep res en t the tax pa y er b efo re rev enue ag en ts , cus to m er s erv ic e rep res en ta ti ve s o r si m il ar o ffi cers an d e m pl oyees o f th e In te rn al Rev enue Serv ic e dur in g a n e xa m in at io n o f th e ta xabl e y ear o r pe rio d co ve redby tha t t ax return, b ut , un le ss othe rwis e p res cri be d b y reg ul at io n o r no ti ce, thi s ri gh t d oe s n otpe rm itsu chin di vi du al to rep res en t the tax pa y er, reg ard le ss of t he cir cu m st an ces requi rin g rep res en ta ti on , bef

or e ap pe al s o ffi cers , rev enue off ic ers , Cou ns el or si mil ar o ffi cers or e m

pl oyees o f th e In te rn al Rev enue Serv ic e o r th e Dep art m en t o f Treas ury . 31 C.F.R. § 10 .7(c )(1 )(v ii i). The se rig ht s t o re pr es en t a t ax pa y er ar e subjec t t o t hr ee l im it at io ns setforth in 31 C.F.R. § 10 .7(c )(2 ). Fir st , a no n- pr act it io ne r is ba rredfro m en ga gi ng inth e li mit edpra ct ic e d is cu ss edin(c)(1 ) if he is un de r su sp en si onor d is barm en t fr om pr act ic e b efo re the IRS. 3 1 C .F.R. § 1 0.7 (c)( 2) (i) . Seco nd , a no n- pr act it io ne r m ay be de ni edth e o pp ortu ni ty to en ga ge inth e li m it edpra ct ic e d is cu ss edin(c)(1 ) if he ha s en ga ge d i n c on du ctth atwou ldm eri t a s an ct io n u nd er 3 1 C .F.R. § 1 0.5 0. 3 1 C.F.R. § 10 .7(c )(2 )(i i). Th ird , a no n- pr act it io ne r who rep res en ts a ta xp ay er u nd er
Under 31 C.F.R. § 10.2, a “pr actitioner” is defined a s an attorne y , CPA, enrolled ag ent, 2 enrolled a ctuar

y , or enr olled retire ment plan ag ent, as those pe rsons are described in 31 C.F.R. § 10.3. An individual may

become an enrolled ag ent af ter takinga written examination and demonstratingspecia l competenc e in tax matters. 31 C.F.R. § 10.4(a). 13(c)( 1) is subjec t t o app li cab le rul es reg ard in g s ta nd ard s o f co nduc t. 3 1 C .F.R. §

10 .7(c )(2 )(i ii ). Thro ug h s ta tu te , Con gr es s h as pro vi de d t ha t o nl y att orne y s an d C PAs m ay rep res en t a p ers on be fo re the IRS. 5 U.S.C. § 5 00 (b )-(c ). No o th er i nd iv idua ls are gr an te d ast atut ory

rig htto do so . 5 U.S.C. § 50 0( d) (1 ). Howev er, Co ng res s al so st at edth atin di vi du al s wh o a re n ei th er an att orne y no r a CPA ar e n ei th er g ran te d no r de ni ed“ th e ri gh t t o app ear f oror r ep res en t a p ers on be fo re an ag en cy or i n a n ag en cy pro ceed in g.” Id. Co ng res s h as en act edleg is la ti on rel at in g t o p ro cedur es in vo lv in g t ax pa y er i nt erv ie ws, b utha s n otexpl ic it ly defi ne d wh o i s au th or iz edto rep res en t a t ax pa y er b efo re the IRS. Un de r 26 U.S.C. § 7 52 1, [a]ny at to rn ey , [CPA], enro ll edag en t, en ro ll edactua ry , or any oth er pe rs onpe rm itte d t o re pr es en t the tax pa y er b efo re the Int ern al Rev enue Serv ic e who is no t d is ba rredor s us pe nd edfro m pra ct ic e be fo re the Int ern al Rev enue Serv ic e an d wh o h as a writ te n p owe r of at to rn ey ex ecu te d b y

th e ta xp ay er m ay

be au th or iz edby suc h t ax pa y er to rep res en t the tax pa y er i n a ny int erv ie w des cri be d i n s ub se ct io n (a ). 26 U.S.C. § 7 52 1( c). Subs ect io n (a ) refe rs to “ an y in -p ers on in te rv ie w with a ny ta xp ay er re la ti ng to th e d et erm in at io n o r co ll ect io n o f an y tax .” 26 U.S.C. § 75 21 (a). A ta xp ay er al so ha s the rig htto su sp en d a n i nt erv ie w if h e cl earl y st at es to anIRS o ffi cer o r em

pl oyee th athe “ wis he s t o c on su ltwith a n a tt orne y , cert ifi ed publ ic acco un tant , enr ol le d a ge nt , enr ol le d a ctua ry , or any oth er p ers on pe rm it te d

14to rep res en t the tax pa y er b efo re the Int ern al Rev enue Serv ic e.” 2 6 U.S.C. §

75 21 (b )(2 ). Co ns eque nt ly, we fi ndth atCo ng res s h as no t d ire ct ly spo ke n o n t he pr eci se qu es ti on of wh ethe r anun en ro ll edrep res en ta ti ve is en ti tl edto rep res en t ta xp ay ers be fo re the IRS u nd er 3 1 C .F.R. § 1 0.7 (c)( 1) (v ii i), andCo ng res s ex pr es sl y ha s g ran te d t o t he Secr et ary th e ri gh t t o re gu la te who pra ct ic es be fo re th e IRS in31 U.S.C. § 3 30 (a) v iaanex pr es s d el eg at io n o f au th or it y . See Ch ev ro n, 4 67 U.S. at 8 42 -4 4, 1 04 S. Ct. at27 81 -8 2. Acco rd in gl y , we rev ie w 31 C.F.R. § 10 .7 o nl y to de te rm in e whe th er i t i s arb it rary, capri ci ou s, o r m an ife st ly con tra ry to st atut e. See C he vr on , 46 7 U.S. at 84 4, 1 04 S. Ct. at27 82 . W e co nc lu de th at31 C.F.R. § 10 .7, wh ic h l im it s the sc op e o f rep res en ta ti on by an une nr ol le d re pr es en ta ti ve , is no t arbi tra ry , cap ric io us , or m an ife st ly con tra ry to st atut e. The IR S h as pro vi de d v al idreas on s fo r th e li m it s o n wh o m ay pra ct ic e, no ti ng th atth e reg ul at io n b al an ces th e n eedfor a ta xp ay er t o h av e aff

or dabl e rep res en ta ti on an d t o b e ab le to ch oo se hi s rep res en ta ti ve with t he ne edforco m pe te ntrep res en ta ti on th atpro te ct s the ta xp ay er, the IRS, an d t he ge ne ral publ ic . An in di vi du al with asp eci al rel at io ns hi p wi th a ta xp ay er, s uc h a s an imm ed ia te fam il y m em be r, is pe rm it te d t o en ga ge inful l re pr es en ta ti on be cau se th e sp eci al rel at io ns hi p s erv es to in crea se th e li ke li ho odth atth e ta xp ay er’s i nt eres ts wil l b e p ro te ct edby his rep res en ta ti ve . An 15in di vi du al m ay rep res en t an y

in di vi du al or e nt it y

ou ts id e o f th e Uni te d S ta te s whe n the rep res en ta ti on oc cu rs ou ts id e o f th e Uni te d S ta te s b ecau se su cha happ en in g i s ra re an d t he av ai labi li ty of qu al ifi edatt orne y s, CP As, o r en ro ll ed ag en ts insu cha si tu at io n i s m in im al . Add it io na ll y , Wrig htm ay pl au si bl y acqui re th e ab il it y

to ful ly repre se ntcli en ts un de r 31 C.F.R. § 10 .7 i f he de m on st rat es hi s kn owl ed ge to th e IRS an d b eco m es en ro ll edun de r 31 C.F.R. § 10 .4(a ). It i s tru e th at26 U.S.C. § 7 52 1 s tate s tha t p ract it io ne rs an d a ny oth er p ers on pe rm it te d t o re pr es en t the tax pa y er b efo re the IRS m ay do so inth e co nt ex t o f a ta xp ay er i nt erv ie w, bu t tha t s ta tu te do es no t d efi ne th e p ers on s p erm it te d t o pr act ic e b efo re the IRS. Co ng res s h as de le ga te d t o t he Secr et ary th e ri gh t t o reg ul at e p ract ic e b efo re the IRS u nd er § 33 0, an d 3 1 C .F.R. § 1 0.7 (c)( 1) (v ii i) i s no t m an ife st ly con tra ry

to st atut e. Ther efo re, Wrigh t’s co nt en ti on th at§ 7 52 1 i s rel ev an t t o d eci di ng th e is su e o n app eal lac ks m eri t. See Co nn . Nat. Bank . v. Germ ai n, 5 03 U.S. 24 9, 2 53 -5 4, 1 12 S. Ct. 1 14 6, 1 14 9 (1 99 2) (no ti ng th at“ co urts sh ou lddi sf

av orin te rp ret at io ns of s ta tu te s tha t re nd er l an gu ag e supe rfl uo us ,” an d th at“ co urts m

us t p res um e th ata le gi sl atur e say s i n ast atut e wha t i t m ean s an d
m ean s i n ast atut e wha t i t s ay s the re.”) . Accor di ng ly, 31 C.F.R. § 10 .7(c )(1 )(v ii i) is no t arbi tra ry , cap ric io us , or m an ife st ly con tra ry to st atut e. Wrig htcan no t rep res en t t ax pa y ers bef

or e th e IRS as a n u ne nr ol le d re pr es en ta ti ve if h e d idno t

16pr ep are t he ir t ax returns an d m ay no t re pr es en t t ax pa y ers who se tax returns he pr ep aredwhen th ey

are en ga ge d i n d eal in gs with t he IRS o n m at te rs ot he r th an ex am in at io ns of t he tax returns whi chhe pre pa red . Wrig htm ay co nt in ue to rep res en t t ax pa y ers be fo re the IRS i n t he cir cu m st an ces all owe d b y 31 C.F.R. § 10 .7(c )(1 )(v ii i), wh ere h e h as pre pa redth e ta xp ay er’s t ax return a t the st ag e o f th e pr oc eed in gs when th e ta x re tu rnis be in g e xa m in edas i n an aud it . II I. CONCLUSI ON Wrig htch al le ng es th e v al id it y of 3 1 C .F.R. § 1 0.7 (c)( 1) (v ii i), c la im in g t ha t itun la wfu ll y

an d a rb it rari ly lim it s h is rig htto rep res en t t ax pa y ers be fo re the In te rn al Rev enue Serv ic e. W e co nc lu de Co ng res s ex pr es sl y de le ga te d aut ho rit y

to th e Sec ret ary to pro m

ul ga te reg ul at io ns go ve rn in g wh o m ay pra ct ic e b efo re the IRS, an d we d et erm in e th at31 C.F.R. § 10 .7(c )(1 )(v ii i) i s a r eas on ab le reg ul at io n whi chis no t arbi tra ry , cap ric io us , or m an ife st ly con tra ry to th e st atut e. Acco rd in gl y , Wrig ht , as an u ne nr ol le d re pr es en ta ti ve , is no t au th or iz edto rep res en t t ax pa y ers be fo re the IRS i f he di d n otpre pare the ir t ax returns an d m ay no t re pr es en t t ax pa y ers who se tax returns he pre paredwhen th ey are en ga ge d i n de al in gs with t he IRS o n m at te rs ot he r th anex am in at io ns of t he tax returns whi ch he pre pa red . AFFIRMED .

17