Abstract
The aim of this paper is to combat abusive tax shelters, the Department of the Tresury promulgated a general anti-abuse regulation applicable to all of subchapter K of the Internal Revenue Code of 1986. The Treasury targeted subchapter K because unique aspects of the partnership tax laws -- including its aggregateentity dichotomy -- foster creative tax manipulation. In the anti-abuse regulation, the Treasury attempted to "codify" existing judicially- created anti-abuse doctrines, such as the business-purpose and economic-substance doctrines. In this article, the author demonstrate that the Treasury exceeded both its constitutional and statutory authority. Congress neither expressly nor implicitly delegated to the Treasury the power either to direct a method of statutory interpretation or to codify the judicially developed anti-abuse doctrines. Hence, the regulation is unconstitutional. Alternatively, even if Congress validly delegated either power to the Treasury, the anti-abuse regulation exceeded the scope of any delegated power and is, thus, ultra vires.