L.S. Vines - Page 11

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               Following an adverse private letter ruling request                     
          conference on September 25, 2001, respondent’s Office of Chief              
          Counsel (Financial Institutions & Products) issued a conference             
          report dated October 19, 2001, stating in pertinent part as                 
          follows:                                                                    
               For basically administrative reasons, we were forced to                
               allow 3� months of hindsight, but if we had the choice,                
               we would not have allowed one day of hindsight.                        
               *        *        *        *        *        *        *                
               We did anticipate that taxpayers would not be able to                  
               use 9100 relief to obtain additional time to file the                  
               election.                                                              

               4(...continued)                                                        
          Apr. 6, 2001, respondent told petitioner’s representative:  “If             
          * * * [petitioner] is not granted section 9100 relief, he has to            
          make the election and follow the procedures for making the                  
          election for year 2001 - So [petitioner] should think about a               
          protective election.”                                                       
               At the time respondent advised petitioner’s representative             
          to file a protective election for taxable year 2001, petitioner             
          had already filed his tax return for his 2000 taxable year on               
          Jan. 17, 2001.  On Apr. 11, 2001, petitioner filed a document               
          captioned “Taxpayer Protective Election for Mark to Market                  
          Accounting under Section 475(f)” for taxable year 2001.                     
               On Oct. 17, 2001, petitioner filed a Form 1040X, Amended               
          U.S. Individual Income Tax Return.  The Form 1040X made no                  
          changes to petitioner’s income or deductions but had attached to            
          it a Form 3115, Application for Change of Accounting Method,                
          which petitioner had not attached to the tax return he filed on             
          Jan. 17, 2001, or the protective sec. 475(f) election he filed              
          on Apr. 11, 2001.                                                           
               The parties also dispute whether petitioner properly made a            
          valid sec. 475(f) election for his 2001 taxable year.  We do not            
          reach that issue because, for reasons stated below, we hold that            
          petitioner is entitled to a sec. 475(f) election for his 2000               
          taxable year.                                                               




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