John and Louisa A. Hodel - Page 9

          the Commissioner, revoke or amend it merely because events do not           
          unfold as planned.  See, e.g., J.E. Riley Inv. Co. v.                       
          Commissioner, 311 U.S. 55 (1940); Pacific Natl. Co. v. Welch, 304           
          U.S. 191 (1938).  Subject to a few narrow exceptions, "once the             
          taxpayer makes an elective choice, he is stuck with it."  Roy H.            
          Park Broadcasting, Inc. v. Commissioner, 78 T.C. 1093, 1134                 
               In Pacific Natl. Co., "often regarded as the fundamental               
          authority for the development" of the doctrine of election,                 
          Estate of Stamos v. Commissioner, 55 T.C. 468, 473 (1970), the              
          taxpayer had the option to treat certain income under the                   
          deferred payment or installment method.  It reported the income             
          using one method and later sought a refund based on a computation           
          under the other method.  The Supreme Court refused to allow this,           
               Change from one method to the other * * * would require                
               recomputation and readjustment of tax liability for                    
               subsequent years and impose burdensome uncertainties upon              
               the administration of the revenue laws.  * * *  There is               
               nothing to suggest that Congress intended to permit a                  
               taxpayer, after expiration of the time within which a return           
               is to be made, to have his tax liability computed and                  
               settled according to the other method.  * * *                          
          Pacific Natl. Co. v. Welch, supra at 194; see also Grynberg v.              
          Commissioner, supra at 261 (quoting Estate of Stamos v.                     
          Commissioner, 55 T.C. 468, 473 (1970)); Estate of Wilbur v.                 
          Commissioner, 43 T.C. at 473, and cases cited therein.                      

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