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for which it applies, and the taxpayer’s basis or
entitlement for making the election.
Sec. 301.9100-12T(d), Temporary Proced. & Admin. Regs., 57 Fed.
Reg. 43896 (Sept. 23, 1992) (redesignating sec. 7.0, Temporary
Income Tax Regs., 42 Fed. Reg. 1470 (Jan. 7, 1977)).
We have previously analyzed these statutory and regulatory
requirements under section 172 in Young v. Commissioner, 83 T.C.
831 (1984), affd. 783 F.2d 1201 (5th Cir. 1986). In Young, it
was held that in order substantially to comply with the election
regulations, “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.” Id. at 839.
P&G’s August 14 letter falls far short of this minimum or
threshold requirement. First, the letter to the service center
was not attached to P&G’s return as required by the regulation.
Second, the letter does not manifest P&G’s agreement or intention
to make the election; it merely inquires whether such an election
can be made. In that regard, most of the NOL’s in question were
incurred during 1991, the year after P&G sent the letter of
inquiry to the service center. Under these circumstances, we
cannot find that P&G has complied with the regulatory
requirements, and we sustain respondent’s determination that
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