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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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