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make an election in accordance with applicable regulations.7
"The making of an election is involved where a taxpayer has a
choice of two methods of computing his tax, each of which is
legal." Thorrez v. Commissioner, 31 T.C. 655, 668 (1958), affd.
per curiam 272 F.2d 945 (6th Cir. 1959). The effect of an
election is generally limited to tax consequences. In contrast,
a disclaimer has both tax and nontax consequences, insofar as its
validity under section 2518 depends on the passage of property
under State law. See Estate of Bennett v. Commissioner, supra.
Moreover, if a decedent makes a valid disclaimer, there is no
elective tax treatment; under section 2518, the property will
perforce be treated as if it had never passed or been transferred
to the decedent.
Federal tax questions of substantial compliance have arisen
only on rare occasion outside the election context. Compare
7 See, e.g., Prussner v. United States, 896 F.2d 218 (7th
Cir. 1990); Fischer Indus., Inc. v. Commissioner, 843 F.2d 224
(6th Cir. 1988); Kerry v. Commissioner, 89 T.C. 327 (1987); Young
v. Commissioner, 783 F.2d 1201 (5th Cir. 1986), affg. 83 T.C. 831
(1984); American Air Filter Co. v. Commissioner, 81 T.C. 709
(1983); Tipps v. Commissioner, 74 T.C. 458 (1980); Penn-Dixie
Steel Corp. v. Commissioner, 69 T.C. 837 (1978); Taylor v.
Commissioner, 67 T.C. 1071 (1977); Hewlett Packard Co. v.
Commissioner, 67 T.C. 736 (1977); Columbia Iron & Metal Co. v.
Commissioner, 61 T.C. 5 (1973); Valdes v. Commissioner, 60 T.C.
910 (1973); Hoffman v. Commissioner, 47 T.C. 218 (1966), affd.
per curiam 391 F.2d 930 (5th Cir. 1968); Sperapani v.
Commissioner, 42 T.C. 308 (1964); Cary v. Commissioner, 41 T.C.
214 (1963); Thurman v. Commissioner, T.C. Memo. 1998-233);
Rockwell Inn, Ltd. v. Commissioner, T.C. Memo. 1993-158.
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