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Proposed Income Tax Regs., 57 Fed. Reg. 24435 (June 9, 1992),
related to the time and manner for making the election under
section 1368(e)(3)(A) and provided:
(5) Time and manner of making elections. A
corporation makes an election for a taxable year under
this paragraph (f) by attaching a statement to a timely
filed original or amended return required to be filed
under section 6037 for that taxable year. The
statement must state that the corporation is making an
election under � 1.1368-1(f), identify the election,
and be signed under penalties of perjury by an officer
of the corporation on behalf of the corporation and by
each shareholder of the corporation who receives a
distribution during the taxable year * * *
The proposed regulation indicates that the Secretary interpreted
section 1368(e)(3) to require the attachment and filing of a
written statement indicating the intent of the shareholders of
the corporation that they unanimously agree to the treatment of
all distributions during the year of election as distributed
first from earnings and profits.5
Final and proposed regulations indicate that the written
statement of election may be attached to a "timely filed original
or amended return". Sec. 1.1368-1(f)(5)(iii), Income Tax Regs.;
5Final regulations under sec. 1368 were adopted and became
effective for taxable years beginning on or after Jan. 1, 1994.
T.D. 8508, 1994-1 C.B. 219, 227. The new regulations contain
nearly identical language to the proposed regulations but,
specifically, refer taxpayers to the consent requirement of the
statute and simply require the statement to establish that the
affected shareholders have consented rather than expressly
requiring that they manifest consent by signing the statement.
Sec. 1.1368-1(f)(5)(iii), Income Tax Regs.
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