- 14 -
timely make such election”, this section applies only to the
election to become an S corporation. See sec. 1362(a) and
(b)(5)(A). Congress provided no reasonable cause exception for
termination of an S corporation election by revocation. See sec.
1362(d)(1). The regulations provide no reasonable cause
exception for termination of an S corporation election by
revocation.
Petitioner failed to revoke BP Concessions’ S corporation
election by March 17, 1997. See secs. 1362(d)(1)(C)(i), 7503.
Indeed, as of the date of trial, petitioner conceded that he
still had not revoked BP Concessions’ S corporation election.
While we are sympathetic to petitioner’s medical condition during
1997 and 1998, there is no provision under section 1362(d) for a
reasonable cause exception for revocation of the S corporation
election. We must apply the law as written; it is up to Congress
to address questions of fairness and to make improvements to the
law. Metzger Trust v. Commissioner, 76 T.C. 42, 59-60 (1981),
affd. 693 F.2d 459 (5th Cir. 1982).
Furthermore, the May 22, 2001, agreement between petitioner
and Mr. Foster is insufficient to revoke the S corporation
election for 1997 or 1998. There is no indication that the
agreement was filed with the proper IRS service center. It does
not include the number of shares of stock issued and outstanding.
See sec. 1.1362-6(a)(3), Income Tax Regs. Additionally, it does
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Next
Last modified: May 25, 2011