Document: 452 U.S. 247 101 S.Ct. 2288 68 L.Ed.2d 814 ROWAN COMPANIES, INC., Petitioner,v.UNITED STATES. No. 80-780. Argued April 21, 1981. Decided June 8, Syllabus Petitioner, for its own convenience, provided meals and lodging to employees working on offshore oil rigs. Petitioner did not include the value of in computing employees' "wages" purpose paying taxes under Federal Insurance Contributions Act (FICA) Unemployment Tax (FUTA) or withholding federal income taxes. Upon audit, Internal Revenue Service included FICA FUTA but income-tax withholding. In doing so, IRS acted consistently with Treasury Regulations that interpret definition such lodging, whereas substantially identical provisions is interpreted by exclude this value. paid additional assessment brought suit District Court a refund. The granted summary judgment Government, Appeals affirmed, holding different interpretations was justified purposes FUTA, one hand, withholding, other. Held: interpreting are invalid, they fail implement statutory consistent reasonable manner. plain language legislative histories relevant statutes indicate Congress intended be same manner as Pp. 250-263. 624 F.2d 701, reversed. K. Martin Worthy, Washington, D. C., petitioner. Stuart A. Smith, respondent. Justice POWELL delivered opinion Court. 1 This case concerns imposed upon employers (FICA), 26 U.S.C. § 3101 et seq., (FUTA), 3301 seq. question whether petitioner should have computation "wages," which base taxation convenience 2 * During tax years question, 1967-1969, Rowan Companies, Inc., owned operated rigs drilling gas wells, both land offshore. Some petitioner's were located many 60 miles from land. It cost less more convenient provide at these than transport each work shift.1 Employees worked 10-day tours duty, then transported them back 5-day periods leave. All rig received facilities, regardless employment status pay. receive any cash allowance if chose eat meal. during their leave; nor it landbased 3 FUTA.2 Nor 3402(a).3 Its uniform practice appeared language, defined three obligations employers.4 however, fair 3402(a). present lodging,5 3401(a) Compare Treas.Reg. §§ 31.3121(a)-1(e), (f) CFR (1980); 31.3306(b)-1(e), 31.3401(a)-1(b)(9), (10) (income-tax withholding), (1980). refund 28 1346(a)(1).6 4 Southern Texas Government's motion judgment. Fifth Circuit expressing view 707 We writ certiorari, 449 1109, 917, 66 838 (1981), because Appeals' decision conflicts decisions other Courts Appeals.7 now reverse. II 5 Government acknowledges properly excluded withheld Under Regulation employer excludes employee his gross income. 31.3401(a)-1(b)(9) convenience-of-the-employer rule, an may furnished him business premises, required accept premises condition employment. 119 (1976 ed., Supp.III).8 Petitioner's provision satisfied requirements. therefore excludable See generally Commissioner v. Kowalski, 434 77, 98 315, 54 252 (1977). 6 Notwithstanding acknowledgment, contends FUTA. relies 31.3121(a)-1(f) 31.3306(b)-1(f) (1980), provide: 7 "Ordinarily, facilities privileges (such entertainment, medical services, so-called 'courtesy' discounts purchases), offered generally, considered remuneration relatively small merely means promoting health, good will, contentment, efficiency employees. term 'facilities privileges,' does ordinarily furnished, example, restaurant hotel employees, seamen aboard vessels, since items constitute appreciable part total employees." 8 If valid, regulations dictate includable even though withholding.9 9 consider valid "implement congressional mandate some manner." United States Correll, 389 299, 307, 88 445, 449, 18 1346 (1967); accord, Portland Cement Co. Utah, 450 156, 169, 1037, 1045, 67 140 (1981). National Muffler Dealers Assn. States, 440 472, 477, 99 1304, 1307, 59 519 (1979), we stated: "In determining particular regulation carries out proper manner, look see harmonizes statute, origin, purpose." Harmony between particularly significant case. itself word issue—"wages"—and Congress' only general authority "prescribe all needful rules." 7805(a). Because can measure Commissioner's interpretation against specific Code, owe deference issued grant define prescribe method executing provision. supra, 165, S.Ct., 1043; Fulman 528, 533, 841, 845, 55 (1978); Batterton Francis, 432 416, 424-425, 97 2399, 2404-05, 53 448, nn. 8-9 Where acts authority, our primary inquiry within delegation authority. 10 Among considerations validity Regulations, inquire "is contemporaneous construction statute those presumed been aware intent," U.S., 1307; "[i]f dates later period, evolved merits inquiry." Ibid. also consider, pertinent, "the consistency interpretation, degree scrutiny has devoted subsequent re-enactments statute." case, hold Treas.Regs. 11 measuring employers' FICA, Central Illinois Public 435 82 (1978), use concepts "income" reimbursements had given lunch expenses company travel overnight stays. held constituted employees.10 relied recognition "[t]he two concepts—income wages—obviously necessarily same. Wages usually income, qualify yet clearly wages." Id., 25, 919 (footnote omitted). short, narrower concept "income," ibid., fact mean 12 position follows reasoning Illinois. argued case—which cannot argument rests assumption meaning correct. B 13 enacted predecessor Titles VIII IX Social Security 1935, ch. 531, 49 Stat. 636, 639. employers, 804, 637; 901, 639, "wages." 811(a), 639; 907(b), 642. originated system 172 1942, 56 884. 26-27, 920-921. again base, 888, used id., 887. When revised replacing Current Payment 1943, 57 126, retained sequence consistency, strong evidence thing 14 Acts establishing support conclusion drawn language. These reveal concern interest simplicity ease administration." S.Rep. 1631, 77th Cong., 2d Sess., 165 (1942) (Revenue 1942). 31, 922. They order promote measure—"wages"—as Thus, proposed House dividends bond addition wages, H.R.Rep. 2333, 125 (1942), Senate limited wages. 165. "This standard intentionally narrow precise." Section specified certain services excepted According Report, "[t]hese exceptions [for withholding] extended scope." 166. 15 replaced 172, much attention 268, 78th 1st pt. 1, p. (1943); 401, pp. 22-23 (1943), left essential unchanged. 14. modified bill House, reported: "[T]he methods collection, payment, administration coordinated applicable section 1400 code. proposal made facilitate administering system." 221, 17 H.R.Conf.Rep. 510, (1943).11 16 sum, 1942 1943 coordinate instances, so administration. Contradictory definitions do serve interest. would extraordinary pursuing intend, without ever saying differently. Despite history, compose distinct rules taxation, exclusion rule 119, apply. support, recites Committee Reports indicating "relieve existing distress . reduce destitution dependency future," 615, 74th (1935). 628, state "[w]ages payments done, compensation form, room, board, etc." 32 (Title (FICA)); 36 (FUTA)); 44 (FUTA). concludes impose broad range accomplish Act's purposes. persuaded contention. reference "room, examples ambiguous. kind regard principles developed rule.12 first 1919, O.D. 265, Cum.Bull. 71, well established 1935. 84-87, 319-321. There no cited determinations create govern think lends relies.13 19 further contends, line rulings unbroken 1940 refutes infer endorsement re-enactment Code 1954. address contentions. C 20 history far consistent. 1935 applied 90, Art. 207 (1936) IX); 91, VIII).14 Pursuant 207, ruled 1937 "supper money" overtime Titles. S.S.T. 110, 1937-1 441. Again 1938, 302, 1938-1 457, free lunches Title IX. 383, 1940-1 210-211. 21 taken subsequently changed, explanation. 1939, passed Amendments 666, 1360, amended exclusions unchanged 603, 614, 1382, 1392, 1426(a), 1607(b), 1607(b) (1952 ed.). 1940, 106, 402.227 107, 403.227 virtually issue No reasons stated change. new crew operating steamship 386, 211-212. 1944, Mim. 5657, 1944 551, added explanation "[i]t immaterial, taxes, quarters employer." 22 pursuant acquired effect law" when re-enacted substantial change 305, 448; Cammarano 358 498, 510-511, 79 524, 531-32, 462 (1959). 1936 short-lived inconsequential. 485-486, 1311-1312.15 23 unconvinced. 106 107 them, 302 1938 "wages"—remainded until after 1957, apply otherwise "still full force effect." Rev.Rul. 57-471, 1957-2 632. explain why took 302. thus clear late 1957-17 adopted—the inconsistent construing Indeed, 1962 finally disavowed 62-150, 1962-2 213.16 assumes great deal argue 1954, re-enacted, implicitly approved Regulations.17 himself 1954 changed still being issued. 24 most ambiguous approve differing constructions statutes, nothing probative endorsement. there consideration re-enactment. III 25 conclude unexplained application undermine contention nonetheless endorsed them. As intend definition, Court's erred relying 27 ordered. WHITE, whom BRENNAN MARSHALL join, dissenting. 29 For Judge Rubin, I agree attack here permissible controlling Code. Consequently, dissent affirm about $6 per day, man engage caterer who maintained living vessel moored alongside rig. $25 crews shift. imposes "on every excise tax, respect having individuals employ, equal [specified] percentages wages employment." 3111. based 3101(a). fund programs. "an [their] [specified percentages] [them] calendar year (1970 funds component cooperative federal-state program unemployment insurance. 3402(a) provides "every making payment shall deduct withhold determined accordance tables prescribed Secretary." identically "all employment, including medium cash." 3121(a) 3306(b) (other fees public official) performed employer, 3401(a). n. 9, infra. totaled $35,198.46, plus Oscar Mayer & 623 1223 (CA7 1980); Hotel Conquistador, Inc. 597 1348, 220 Ct.Cl. cert. denied, 444 1032, 100 702, 62 668 reads, pertinent part: "(a) Meals employee, spouse, dependents, "There him, dependents behalf if— "(1) meals, "(2) assumed, explicitly holding, fall 31.3306(b)-1(f), valid. petition although reply brief disputed assertion Reply Brief 3, 6. opinion. implicated requirements present. supra. treatment governed 162(a)(2), allows deduction traveling expenses. moved into chapter 1939 contained incorporated amended, Chapter old-age disability became Subchapter A C. 450-476. 1621-1632. inclusion room board unless employer's convenience. true codified But foreclosed applicability To contrary, retained—and unchanged—the employers; expressly applies provisions. "facilities cafeterias, restaurants, 14, differed slightly, contain phrase "as employer," way 207. 457. Pacific American Fisheries, 138 464 (CA9 1943), contending Regulations. court "what might taxable Act." 465. cites suggest Ruling 62-150 noted omitted 1940. place, remained changed. series private 1965 reveals source confusion Although precedential force, 6110(j)(3); 301.6110-7(b), 301.6110-7(b) lie dormant books series, school inquired served teachers school's teachers' FICA. replied January need not, "S.S.T. instant case." Private 5401062910A. second ruling, contract. March "based 5403042970A. third, 1955 value, equally 5501244180A. ruling flatly restaurants. (FICA); time fourth series. another Relying contended excludable. answered "cannot regarded industry." 5710044200A. Nonetheless, like 630, repudiated industry, leaving apparently employers. Finally, 1965, revocation 213, retroactively. limitation 57-471 retroactively 6507023460A.

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