Robert E. Wadlow and Connie V. Wadlow - Page 15




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               In section 183(e)2 the Congress provided rules to facilitate           
          the even-handed administration of the provisions of section 183.            
          In paragraphs (3) and (4) of section 183(e), the Congress gave to           
          the Secretary broad power to determine what should be in the                
          election under section 183(e), required that such an election               
          contain specified elements of an extension agreement,                       
          legislatively mandated the IRS's consent to extend the assessment           
          period, and explicitly provided that the assessment period is               


               2    Sec. 183(e) provides, in pertinent part, as follows:              
               SEC. 183.  ACTIVITIES NOT ENGAGED IN FOR PROFIT.                       
                           *    *    *    *    *    *    *                            
                    (e) Special Rule.--                                               
                           *    *    *    *    *    *    *                            
                         (3) Election.--An election under paragraph (1)               
                    shall be made at such time and manner, and subject to             
                    such terms and conditions, as the Secretary may                   
                    prescribe.                                                        
                         (4) Time for assessing deficiency attributable to            
                    activity.--If a taxpayer makes an election under                  
                    paragraph (1) with respect to an activity, the                    
                    statutory period for the assessment of any deficiency             
                    attributable to such activity shall not expire before             
                    the expiration of 2 years after the date prescribed by            
                    law (determined without extensions) for filing the                
                    return of tax under chapter 1 for the last taxable year           
                    in the period of 5 taxable years (or 7 taxable years)             
                    to which the election relates.  Such deficiency may be            
                    assessed notwithstanding the provisions of any law or             
                    rule of law which would otherwise prevent such an                 
                    assessment.                                                       





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