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notice, and the filing of the petition disputing the 1994 tax
year.
Petitioner argues that it did make a proper election out of
MACRS pursuant to section 168(f)(1)(A). Petitioner concedes that
it did not comply “exactly” with the requirements of the Code to
make the election; however, petitioner contends that it
substantially complied with those provisions. Petitioner argues
that the Court has allowed elections to be valid in such
situations, citing ABC Rentals of San Antonio, Inc. v.
Commissioner, T.C. Memo. 1999-14, Taylor v. Commissioner, 67 T.C.
1071 (1977), and Tipps v. Commissioner, 74 T.C. 458 (1980).
The temporary regulations provide the time and manner of
making elections pursuant to section 168(f)(1). See sec.
301.9100-7T(a)(1), Temporary Proced. & Admin. Regs., 52 Fed. Reg.
3624 (Feb.5, 1987). The election must be made by the later of
the due date of the tax return for the first taxable year for
which the election is to be effective or April 15, 1987. Sec.
301.9100-7T(a)(2), Temporary Proced. & Admin. Regs., 52 Fed. Reg.
3626 (Feb. 5, 1987). In addition, the temporary regulation
provides instructions on how to make the election: An election
is made by “attaching a statement to the tax return for the
taxable year for which the election is to be effective”. Sec.
301.9100-7T(a)(3)(i), Temporary Proced. & Admin. Regs., 52 Fed.
Reg. 3627 (Feb. 5, 1987). The regulation further provides that
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