Final answer:
The judiciary, particularly the Supreme Court and lower courts, has the authority to invalidate IRS Regulations if they conflict with the federal tax code, leveraging the principles of judicial review and national supremacy.
Step-by-step explanation:
The subject of the question relates to the power of the judiciary, specifically the Supreme Court and lower courts, to review and potentially invalidate IRS Regulations that are in conflict with the Code. This power is rooted in the principle of judicial review, where courts have the authority to strike down laws and government actions that they find to be unconstitutional. For example, if the IRS enacts a regulation that contradicts the federal tax code, the courts can determine that the regulation is invalid.
The Supremacy Clause of the Constitution plays a critical role in this, as it establishes that federal law takes precedence over state laws whenever there is a conflict. Furthermore, the courts have used doctrines such as national supremacy and implied powers to uphold the legitimacy of federal laws and powers. It is important to note that the Code of Federal Regulations is the collection of these federal rules and regulations, including those made by the IRS.
The judiciary's power to interpret the Constitution extends to all aspects of federal law and regulation, which includes reviewing the alignment of IRS Regulations with the Code. Cases like those involving the interstate commerce clause demonstrate the broad scope of congressional power to regulate economic activities, which the IRS helps to administer through its regulations.