L.S. Vines - Page 12

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               *        *        *        *        *        *        *                
               We would have done a regulation project if we had not                  
               believed section 301.9100-3 would prevent taxpayers                    
          from filing late elections.                                                 
               *        *        *        *        *        *        *                
               The drafters of Rev. Proc. 99-17 did not want 9100                     
          relief to be available for 475(f) elections.                                
               On December 4, 2001, respondent’s Office of Chief                      
          Counsel issued a section 301.9100-3, Proced & Admin. Regs.,                 
          file memo stating in pertinent part as follows:                             
               Did the taxpayer apply for relief before the failure to                
               make the election was discovered by the Service (see �                 
               301.9100-3(b)(1)(i))?[5]  Yes.                                         
               *        *        *        *        *        *        *                
               Is the taxpayer considered to have acted reasonably and                
               in good faith, taking into account � 301.9100-                         
               3(b)(3)(i)-(iii)?[6]                                                   
               *        *        *        *        *        *        *                
               It is unnecessary to reach conclusions pertaining to                   
               sections 301.9100-3(b)(3)(i)-(iii) due to the                          
               taxpayer’s failure to satisfy the requirements under                   
               section 301.9100-3(c)(2).[7]                                           

               5Sec. 301.9100-3(b)(1)(i)-(v), Proced. & Admin. Regs.,                 
          discussed more fully below, lists five criteria, under any one of           
          which the taxpayer is deemed to have acted reasonably and in good           
          faith.                                                                      
               6Sec. 301.9100-3(b)(3)(i)-(iii), Proced. & Admin. Regs.,               
          discussed more fully below, lists five criteria, under any one of           
          which the taxpayer is deemed not to have acted reasonably and in            
          good faith.                                                                 
               7Sec. 301.9100-3(c)(2), Proced. & Admin. Regs., provides               
          special rules for accounting method regulatory elections, which             
                                                        (continued...)                





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