John and Louisa A. Hodel - Page 11

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          taxpayer elected one of several allowable alternatives in the               
          amended return.  Goldstone v. Commissioner, 65 T.C. 113, 116                
          (1975).  However, mere                                                      
               Oversight, poor judgment, ignorance of the law,                        
               misunderstanding of the law, unawareness of the tax                    
               consequences of making an election, miscalculation, and                
               unexpected subsequent events have all been held insufficient           
               to mitigate the binding effect of elections made under a               
               variety of provisions of the Code.                                     
          Estate of Stamos v. Commissioner, supra at 474 (citations                   
          omitted).                                                                   
               We find that petitioners' desire to amend their returns is             
          based on the type of justifications enumerated in Estate of                 
          Stamos.  Thus, pursuant to the doctrine of election, petitioners            
          may not change their election to deduct preproductive expenses              
          without the approval of the Commissioner.  Petitioners have not             
          received the approval of the Commissioner and, therefore, are not           
          entitled to revoke their election.                                          
          Refund of 1986 Overpayment                                                  
               Petitioners did not file their corporate or personal joint             
          Federal income tax returns for 1986 through 1990 until in or                
          about July 1991.  Petitioners received extensions to file only              
          for their 1986 and 1989 returns, which were due August 15, 1987,            
          and August 15, 1990, respectively.  The IRS selected petitioners'           
          1986 through 1990 corporate and personal returns for examination            
          in August 1991 and commenced an audit thereof in May 1992.                  







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