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required the election to be filed no later than the due
date for the previous year’s tax return; i.e., Apr. 17,
2000. P then employed a law firm to file the election
and a request for relief pursuant to sec. 301.9100-
3(c), Proced. & Admin. Regs. On July 21, 2000, the law
firm submitted the election on P’s behalf. P did not
trade any securities, realize any further gains, or
suffer any further losses between Apr. 17 and July 21,
2000. P’s losses were exactly the same on July 21,
2000, as they were on Apr. 17, 2000. In a Private
Letter Ruling, dated Dec. 5, 2001, R denied P’s request
for an extension of time to file the election pursuant
to sec. 301.9100-3(c), Proced. & Admin. Regs.
Subsequently, R determined deficiencies in tax for P’s
taxable years 1999 and 2000.
Held: P is entitled to an extension of time to
file his sec. 475(f), I.R.C., election pursuant to sec.
301.9100-3, Proced. & Admin. Regs. P is entitled to
relief because he acted reasonably and in good faith
and the interests of the Government will not be
prejudiced. Accordingly, P is entitled to the benefits
of sec. 475(f), I.R.C., for the taxable year 2000 as if
he had timely filed the election.
David D. Aughtry, Roy J. Crawford, and Hale E. Sheppard, for
petitioner.
Monica D. Armstrong, for respondent.
WELLS, Judge: Respondent determined deficiencies in tax for
petitioner’s 1999 and 2000 taxable years of $6,312,641 and
$6,835,942, respectively.1 The issue we decide is whether,
pursuant to section 301.9100-3, Proced. & Admin. Regs.,
petitioner should be granted an extension of time to file a
1Respondent contends that petitioner in not entitled to
certain deductions for meals and entertainment for taxable year
1999, gifts to employees for taxable year 1999, and alimony
payments for taxable year 2000 all of which petitioner concedes.
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