-50-
waived by the District Director or Assistant Commissioner
(International), in rare and unusual circumstances if good cause
for such waiver, based on the facts and circumstances, is
established by the foreign corporation.”
As to the inclusion of the timely filing requirement, the
preamble to the 1990 regulations states in relevant part:
Commentators questioned the validity of the filing
deadlines as set forth in the proposed regulations.
The filing deadlines were not eliminated in the final
regulations, however, since the statute clearly
provides for the denial of deductions and credits if
returns are not filed in a timely manner. This
requirement is justified because of different
administrative and compliance concerns with regard to
nonresident alien individuals and foreign corporations.
[T.D. 8322, supra, 1990-2 C.B. at 172, 55 Fed. Reg.
50827 (Dec. 11, 1990).]
Among the referenced commentators was the American Bar
Association Section of Taxation (ABAST). See Letter from Holden,
Chair, Section of Taxation, American Bar Association Section of
Taxation (May 25, 1990), reprinted in 90 TNT 120-28 (June 7,
1990). The ABAST commented that the timely filing requirement
was inconsistent with section 882(c)(2) and supported that
comment by citing Anglo-Am. Direct Tea Trading Co. v.
Commissioner, 38 B.T.A. 711 (1938), Blenheim Co. v. Commissioner,
125 F.2d 906 (4th Cir. 1942), Ardbern Co. v. Commissioner,
120 F.2d 424 (4th Cir. 1941), and Georday Enters. v.
Commissioner, 126 F.2d 384 (4th Cir. 1942), all of which, the
ABAST stated, rejected such a requirement. See Letter from
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