Estate of Edward H. Eddy - Page 9




                                        - 9 -                                         
          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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