- 5 -
for the taxable year of the sale. Sec. 453(d)(2). One method by
which a taxpayer makes the election is to report the full amount
realized on the sale on his income tax return filed for the
taxable year of the sale. Sec. 15A.453-1(d)(3)(i), Temporary
Income Tax Regs., 46 Fed. Reg. 10718 (Feb. 4, 1981). Once made,
an election cannot be revoked without the consent of the
Secretary. Sec. 453(d)(3).
Petitioner concedes that she reported the full amount
realized from the sale of her residence on her 1995 tax return.
She argues, however, that this was not a valid election out of
the installment method because her return was not timely filed,
thereby causing the election to be invalid under section
453(d)(2).
Generally, a tax return is filed on the date it is received
by the Internal Revenue Service (IRS). However, if a tax return
meets the requirements of section 7502, the return will be deemed
to have been filed on the date it was postmarked, even if it is
received by the IRS after its due date. The following
requirements apply to documents which are mailed in envelopes
with private post meter postmarks:
If the postmark on the envelope * * * is made
other than by the United States Post Office, (1) the
postmark so made must bear a date on or before the last
date * * * prescribed for filing the document, and (2)
the document must be received * * * not later than the
time when a document contained in an envelope * * *
which is properly addressed and mailed and sent by the
same class of mail would ordinarily be received if it
Page: Previous 1 2 3 4 5 6 7 8 9 10 Next
Last modified: May 25, 2011