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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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