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required that a consistent election be filed in order to meet the
requirements of substantial compliance. In Priv. Ltr. Rul. 90-
43-010 (Oct. 26, 1990), on facts very similar to the instant
case, the Commissioner ruled that the taxpayer substantially
complied "Provided that no later than 30 days after the date of
this letter, [the electing party] files a section 1368(e)(3)(A)
election".9 Here, instead of causing EMFI to file a late
election in an effort to substantially comply, petitioners
amended their 1992 Form 1040 to report no taxable distributions
were received.10 We, therefore, find that the conflicting
8(...continued)
But cf. Bond v. Commissioner, 100 T.C. 32 (1993)
(substantial compliance found on information within the
originally filed return); Hoffman v. Commissioner, 47 T.C. 218
(1966), affd. 391 F.2d 930 (5th Cir. 1968) (revocation of S
corporation election allowed without amended or late filing).
9Although private letter rulings are not precedent, sec.
6110(j)(3), they "do reveal the interpretation put upon the
statute by the agency charged with the responsibility of
administering the revenue laws." Hanover Bank v. Commissioner,
369 U.S. 672, 686 (1962); see Rowan Cos. v. United States, 452
U.S. 247, 259 (1981); Estate of Cristofani v. Commissioner, 97
T.C. 74, 84 n.5 (1991).
10Respondent argues that if EMFI is treated as not having
made the election, then taxpayers in the future will be able to
whipsaw the Government. Respondent argues that taxpayers may
substantially comply except for filing the election form and,
later, depending on whether it is in the taxpayer's interest,
effectively revoke the election by amending the shareholder's
returns to request a refund. However, by requiring EMFI to file
an election, our decision in this case only reinforces the
Commissioner's regulatory requirement that an election statement
be filed. Moreover, the Commissioner's regulations provide for
an election to be made on a "timely filed original or amended
(continued...)
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