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respondent has the burden of demonstrating the validity of JPS's
S corporation election.
Deficiencies
We turn to the deficiency determinations, on which
petitioner bears the burden. Petitioner challenges the validity
of the S corporation election on three grounds: (1) That the
signatures on the Form 2553 were forgeries that were not
authorized by petitioner or Mary Ann Johnson; (2) that when the
Form 2553 was stamped "Received" by the Fresno Service Center on
November 26, 1976, it was untimely; and (3) that when the Form
2553 was stamped "Received" on November 26, 1976, it was not
complete enough to be a valid election, and when it was stamped
"Received" a second time on January 12, 1977, in more complete
form, it was untimely.
With respect to the signatures, respondent contends that
petitioner is precluded from challenging the validity of the S
corporation election based on irregularities in the Form 2553
that were not detectable by respondent. Since nothing on the
face of the Form 2553 as submitted indicated irregularities in
the signatures, petitioner should be precluded from later
challenging the validity of the election on the basis of the
signatures, respondent argues, lest taxpayers be given license to
"work both sides of the street" as suits their interests. Fully
articulated, respondent's theory is that both taxpayers and the
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