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taxable year in which the NOL was incurred. Id.; see sec.
301.9100-12T(b), Temporary Proced. & Admin. Regs., 57 Fed. Reg.
43896 (Sept. 23, 1992). Once made, the election is irrevocable.
Id. The statute directs the Secretary to prescribe the manner in
which taxpayers shall make the election. Id.
The Secretary promulgated the following regulation
concerning a taxpayer’s election to waive NOL carrybacks:
[The election] shall be made by a statement attached to
the return (or amended return) for the taxable year.
The statement required when making an election pursuant
to this section shall indicate the section under which
the election is being made and shall set forth
information to identify the election, the period for
which it applies, and the taxpayer’s basis or
entitlement for making the election. [Sec. 301.9100-
12T(d), Temporary Proced. & Admin. Regs., 57 Fed. Reg.
43896 (Sept. 23, 1992) (redesignating sec. 7.0,
Temporary Income Tax Regs., 42 Fed. Reg. 1470 (Jan. 7,
1977)).]
The Court analyzed these statutory and regulatory
requirements under section 172 in Young v. Commissioner, 83 T.C.
831 (1984), affd. 783 F.2d 1201 (5th Cir. 1986). In Young, the
Court held that to be in substantial compliance with the election
requirements, “as an absolute minimum, the taxpayer must exhibit
in some manner, within the time prescribed by the statute, his
unequivocal agreement to accept both the benefits and burdens of
the tax treatment afforded by that section.” Id. at 839.
Petitioners contend that the postal receipt is evidence that
the so-called draft return and the April 4, 1996 letter were
mailed to respondent and, thus, the election requirements under
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