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Estate of Archer v. Commissioner, T.C. Memo. 1984-57. DEFRA
amended section 2032(d),11 to effect Congress' intent that "an
election may be made on a late-filed return only if the return is
filed within one year of the due date." H. Conf. Rept. 98-861,
at 497 (1984), 1984-3 C.B. (Vol. 2) 1, 497; see supra note 9; see
also sec. 301.9100-6T(b)(1), Temporary Proced. & Admin. Regs., 49
Fed. Reg. 35489 (Sept. 10, 1984) ("no election shall be allowed
unless made on a return filed within one year of the due date
(including extensions) of such return").
The opportunity to elect to value property of a decedent's
estate as of a date after the decedent's death is one of
"legislative grace" and therefore must be made in the manner and
the time prescribed by Congress. Estate of Flinchbaugh v.
Commissioner, 1 T.C. 653, 655 (1943). It is clear that the
statute, the temporary regulation, and the legislative history
all provide that the alternate valuation election may not be made
later than 1 year after the due date (including extensions) of
11Sec. 1023(a) of the Deficit Reduction Act of 1984 (DEFRA),
Pub. L. 98-369, 98 Stat. 494, 1030, added subsec. (c) to sec.
2032, and former subsec. (c) was redesignated subsec. (d). DEFRA
sec. 1024(a), 98 Stat. 1030, designated the existing text of
redesignated sec. 2032(d) as par. (1) and substituted "shall be
made by the executor on the return of the tax imposed by this
chapter" for "shall be exercised by the executor on his return if
filed within the time prescribed by law or before the expiration
of any extension of time granted pursuant to law for the filing
of the return", added the sentence providing that an election,
once made, is irrevocable, and added par. (2). See supra note 9.
Sec. 2032(d)(2) is effective for the estates of decedents dying
after July 18, 1984. See DEFRA sec. 1024(b)(1), 98 Stat. 1030.
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