Opinion ID: 3039612
Heading Depth: 4
Heading Rank: 1

Heading: Chevron Step One: Ambiguity of the

Text: Statutory Text First, previous judicial interpretations of I.R.C. §882(c)(2) do not preempt our analysis in determining if the statute is ambiguous. Taxpayer argues that our analysis is unnecessary pursuant to the Supreme Court’s holding in National Cable & Telecommunications Ass. v. Brand X Internet Services, Inc., 545 U.S. 967 (2005). Brand X, however, held that “[o]nly a judicial precedent holding that the statute unambiguously forecloses the agency’s interpretation, and therefore contains no gap for the agency to fill, displaces a conflicting agency construction.” Id. at 982-83. No such opinion exists in this case.11 Accordingly, we are not bound by previous judicial interpretations of I.R.C. § 882(c)(2). Under Chevron, if the statutory language is clear and unambiguous, our inquiry ends and the plain meaning of the statute governs the action. 467 U.S. at 842-43. If, however, the statutory provision is ambiguous, such ambiguity is viewed as an implicit congressional delegation of authority to an agency, 11 Taxpayer heavily relies on Anglo-American Tea Trading Co. v. C.I.R., 38 B.T.A. 711 (1938). The court in AngloAmerican did not purport to adopt or apply the unambiguous meaning of the word “manner.” Rather, the court detailed the interpretive confusion that courts confronted. Only after detailing this confusion did the court decide that no timing element was applicable. Id. at 714; see also Ardbern Co. v. C.I.R., 120 F.2d 424, 426-27 (relying on Ango-American without applying “unambiguous meaning”). The Tax Court acknowledged this fact, noting that previous judicial constructions “did not state explicitly that they were applying the unambiguous meaning of the word ‘manner’ . . ..” Swallows Holding, 126 T.C. at 145. 16 allowing the agency to fill the gap with a reasonable regulation. MCI Telecomm. Corp. v. Bell Atlantic-Pa., 271 F.3d 491, 51516 (3d Cir. 2001). The inquiry into the ambiguity of a statutory provision must begin with the text of the statute. The text of