L.S. Vines - Page 16

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          section 9100 relief to extend the time to make the section 475(f)           
          election.                                                                   
               Respondent relies on Rev. Proc. 99-17 sec. 5.03, 1999-1 C.B.           
          503, 504, which states in pertinent part as follows:                        
               SECTION 5. PROCEDURES FOR MAKING THE MARK-TO-MARKET                    
               ELECTIONS                                                              
               *        *        *        *        *        *        *                
               .03 Elections effective for a taxable year beginning on                
               or after January 1, 1999.                                              
                    (1) General procedure.  * * * for a taxpayer to                   
                    make a � 475(e) or (f) election that is effective                 
                    for a taxable year beginning on or after January                  
                    1, 1999, the taxpayer must file a statement that                  
                    satisfies the requirements in section 5.04 of this                
                    revenue procedure.  The statement must be filed                   
                    not later than the due date (without regard to                    
                    extensions) of the original federal income tax                    
                    return for the taxable year immediately preceding                 
                    the election year and must be attached either to                  
                    that return or, if applicable, to a request for an                
                    extension of time to file that return.  [Emphasis                 
                    added.]                                                           
          Accordingly, respondent contends that, pursuant to Rev. Proc. 99-           
          17 sec. 503, petitioner was required to file his section 475(f)             
          election by April 17, 2000, the due date for his 1999 tax return.           
               Petitioner contends that he should be allowed the benefit of           
          section 9100 relief to extend the time to make the section 475(f)           
          election because he acted reasonably and in good faith and the              
          interests of the Government will not be prejudiced.9                        

               9Petitioner also contends that Rev. Proc. 99-17, 1999-1 C.B.           
          503, is invalid and unlawful because the plain language of sec.             
                                                             (continued...)           





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