- 14 -
This Court further stated in Young v. Commissioner, supra at
839:
as an absolute minimum, the taxpayer must exhibit in
some manner, within the time prescribed by the statute,
his unequivocal agreement to accept both the benefits
and burdens of the tax treatment afforded by that
section. * * *
The rationale for the required election, as explained by the
Court, is to prevent the taxpayer from being allowed to wait and
see how a net operating loss can best be utilized; in making the
election irrevocable, the statute forecloses the taxpayer from
later claiming that he never intended to make the election. See
Young v. Commissioner, supra, 83 T.C. at 839. None of the
relevant returns in the present case clearly expresses an
intention on the part of petitioner to forgo the carryback of a
6(...continued)
"amended return is irrelevant" in determining substantial
compliance with the election requirements. Young v.
Commissioner, supra, 83 T.C. at 840-841. In rejecting the
taxpayer's argument that sec. 7.0(d), Temporary Income Tax Regs.,
42 Fed. Reg. 1469 (Jan 7, 1977), provides that an election may be
made in an amended return, the Court explained:
This is true; however, in order to square the
regulation with the directive of the statute, an
election made in a subsequently filed return can only
be effective if the subsequently filed return is filed
before the due date of the return.
Young v. Commissioner, supra, 83 T.C. at 841 n.9. In this case,
petitioner's 1987 amended return was filed more than 1 year after
the due date of the original return, and there was no evidence in
the record with respect to any extensions for filing.
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