TAXTITAN'S

PRESENTED BY: GROUP 5

 FORCE &
EFFECT OF
REGULATIONS
. The force and effect of regulations depend on the specific regulatory authority and the applicable
laws or statutes that authorize the authority to issue regulations. Regulations are rules or
requirements issued by a regulatory authority, such as a government agency or professional
association, to guide or govern the conduct of individuals or organizations within a particular
industry or field.
-Non-compliance with regulations can result in penalties, fines, legal action, or other enforcement
measures, depending on the severity of the violation and the discretion of the regulatory authority.

Regulations, also called administrative laws or rules, are the primary vehicles by which the federal
government implements laws and agency objectives. They are specific standards or instructions
concerning what individuals, businesses, and other organizations can or cannot do. Market
economies need clear rules to function efficiently. There are two types of rules – INTERPRETIVE
RULES and SUBSTANTIVE RULES. The process of making rules is – not surprisingly – called
“rulemaking,” and is governed by a federal statute called the Administrative Procedure Act (APA).
The APA divides rules into those that are interpretive and those that are substantive. Interpretive
rules (those just interpreting a statute) are not subject to the requirements of APA notice and
comment rulemaking, and do not have the force and effect of law.

FORCE AND EFFECT OF REGULATIONS



They have the force of law and are enforceable by penalties and fines. Here are a
few instances of how regulations in taxation are in force and effective:
1. Tax regulations mandate that taxpayers disclose all income they received throughout
the tax year. Penalties and fines may apply if certain reporting requirements are not
met.
2. Deductible expenses: Tax regulations specify which expenses are deductible and
which are not. Taxpayers who submit non-deductible expenses risk penalties and fines.
3. Withholding taxes: Employers are required to withhold taxes from their
employees' paychecks and remit them to the government. Penalties and fines may
apply if this is not done.
4. Tax credits: According to tax laws, a number of tax credits are available, including
the Earned Income Tax Credit and the Child Tax Credit. Taxpayers must meet specific
eligibility conditions in order to claim these credits, and failure to do so may result in
penalties and fines.
5. Tax audits: Tax authorities have the authority to examine taxpayers to determine
whether or not tax laws are being followed. Inaccurate or incomplete information
provided by taxpayers during an audit may result in penalties and fines.

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 ADMINISTRATIVE
INTERPRETATIONS
& OPINIONS
 ADMINISTRATIVE
INTERPRETATIONS
Administrative Interpretation is for the Community
Development Director to make an interpretation of the
provisions of the zoning code, clarifying conflicting or
ambiguous wording or the scope or intent of the
provisions of the zoning code.

Administrative interpretations and opinions can take

different forms, such as revenue rulings, revenue
procedures, and private letter rulings. The tax authorities
publish revenue decisions and revenue procedures that
offer instructions on how to understand and apply the
tax laws and regulations in specific situations.

INTRODUCTION
 ACCORDING TO:
Bowles v. Seminole Rock & Sand Co.
Bowles v. Seminole Rock & Sand Co. In interpreting
an administrative regulation, a court must look to
the administrative construction of the regulation if
the meaning of the words used is in doubt. The
administrative interpretation holds controlling
weight unless it is plainly erroneous or inconsistent
with the regulation.
Skidmore v. Swift & Co.
Rulings, interpretations, and opinions of
agency administrators are not controlling on
courts but provide a body of experience and
informed judgment that courts can use for
guidance.
 THE SUPREME COURT HAS OUTLINED THREE
FORMS OF DEFERENCE THAT COURTS OWE TO
AGENCIES

Chevron deference for Seminole Rock/Auer

Skidmore deference for
formal interpretations of deference for interpretations
informal interpretations of of agency regulations:
statutes: statutes:
a court should defer to the agency
a court should defer to the agency if unless the agency’s interpretation is
a court should defer to the agency
the agency’s construction of the plainly erroneous or inconsistent
to the extent that the agency’s
statute is permissible with the regulation.
interpretation is persuasive
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