Sam H. Patton - Page 9




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               Finally, neither the statute nor the regulations permit                
          petitioner to revoke (modify) his original election without the             
          Secretary’s consent.  In that regard, petitioner does not argue             
          and has not shown that the Secretary’s regulations are                      
          unreasonable or that they do not comport with congressional                 
          intent.  Section 1.179-5(b), Income Tax Regs., provides that the            
          Commissioner’s consent to revoke an election “will be granted               
          only in extraordinary circumstances.”  Legally and factually,               
          petitioner accepts that his attempt to change the election is               
          untimely.  We are cognizant of the fact that petitioner’s                   
          circumstances are of his own making.  His need to revoke (modify)           
          his section 179 election only arose after respondent uncovered              
          petitioner’s failure to report all of his income and his                    
          misclassification of the very assets for which section 179                  
          treatment is sought.  Accordingly, we hold that respondent did              
          not abuse his discretion in refusing to consent to petitioner’s             
          request to revoke (modify) the 1995 election under section 179.             
               To reflect the foregoing and due to concessions by the                 
          parties,                                                                    
                                             Decision will be entered                 
                                        under Rule 155.                               











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