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(1) Petitioner failed to satisfy the requirements of section
2032A(e)(7) and section 20.2032A-4, Estate Tax Regs.;
(2) petitioner failed to elect special use valuation under
section 2032A(e)(8); and
(3) even if petitioner is deemed to have elected special use
valuation under section 2032A(e)(8), petitioner failed to comply
substantially with its requirements at the time its election was
made and therefore was not entitled to notice and an opportunity
to cure under section 2032A(d)(3).
In respondent’s posttrial brief, respondent now concedes that
substantial compliance is no longer an issue but asserts a new
argument, that petitioner has not met the requirements of section
2032A(e)(8) because petitioner has not introduced evidence on
each of the five factors.
We reject respondent’s substantive challenge to petitioner’s
section 2032A(e)(8) election because respondent failed to give
petitioner the notice and opportunity to cure its election under
section 2032A(e)(8) as required by section 2032A(d)(3). Section
2032A(d)(3) requires the Commissioner to prescribe procedures to
ensure that (1) an electing estate is given notice of defects in
its special use election and (2) an estate is given the
opportunity to cure a defective election by providing missing
information. Although the Commissioner has not yet prescribed
the procedures required by section 2032A(d)(3), the Commissioner
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