Agri-Cal Venture Associates, Frederick H. Behrens, Tax Matters Partner, et al. - Page 32




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          regulatory requirements in dispute are procedural and respondent            
          was not prejudiced by the omissions, the Court may determine that           
          the regulatory requirements have been fulfilled.                            
               On numerous occasions we have discussed the necessity of               
          literal compliance with the procedural requirements in Treasury             
          regulations on making elections, such as “place of filing”                  
          requirements.  See, e.g., Hewlett-Packard Co. v. Commissioner,              
          67 T.C. 736, 748 (1977), in which we said:  “Repeatedly this                
          Court has held elections effective where the taxpayer complied              
          with the essential requirements of a regulation even though the             
          taxpayer failed to comply with certain procedural directions                
          therein.”  In Taylor v. Commissioner, 67 T.C. 1071, 1077 (1977),            
          we said:                                                                    
               The critical question to be answered is whether the                    
               requirements relate to the substance or essence of the                 
               statute.  If so, strict adherence to all statutory and                 
               regulatory requirements is a precondition to an                        
               effective election.  On the other hand, if the                         
               requirements are procedural or directory in that they                  
               are not the essence of the thing to be done but are                    
               given with a view to orderly conduct of business, they                 
               may be fulfilled by substantial, if not strict,                        
               compliance. [Internal quotation marks and citations                    
               omitted.]                                                              
          We are not dealing here with an election, yet the situation is              
          analogous, and the same considerations apply.                               
               The service center filing specification is not required by             
          the statutory provision providing for an extension by agreement             
          of the 3-year period.  See sec. 6229(b).  We find that the filing           






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