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our analysis of section 301.9100-3(c), Proced. & Admin. Regs.,
keeping in mind the following policies stated by the Secretary in
the preamble to the final regulations:
There are two policies that must be balanced in
formulating the standards for � 301.9100 relief. The
first is the policy of promoting efficient tax
administration by providing limited time periods for
taxpayers to choose among alternative tax treatments
and encouraging prompt tax reporting. The second is
the policy of permitting taxpayers that are in
reasonable compliance with the tax laws to minimize
their tax liability by collecting from them only the
amount of tax they would have paid if they had been
fully informed and well advised. [T.D. 8742, 1998-1
C.B. 388, 389.11]
Section 301.9100-3(a), Proced. & Admin. Regs., provides in
pertinent part as follows:
� 301.9100-3. Other Extensions–(a) In general.--
* * * Requests for relief subject to this section will
be granted when the taxpayer provides the evidence * *
* to establish to the satisfaction of the Commissioner
11The Secretary also expressed this view in the preamble to
temporary/proposed sec. 301.9100 regulations, T.D. 8680, 1996-2
C.B. 194, which states: “The regulations provide a means by
which taxpayers can be in the same position they would have been
in had they made their elections in a timely manner.”
This view was also endorsed by Annette Smith, Tax
Legislative Counsel, in the hearing on temporary/proposed sec.
301.9100 regulations, T.D. 8680, 1996-2 C.B. 194, where she
stated:
I would agree that the 9100 policy should be to try to
put a taxpayer back in the same position they would
have been had they made a timely election, and I think
that policy’s based on the fact that there can be
significant consequences to a taxpayer who’s qualified
to make an election and fails to make it timely.
[Reprinted in Tax Notes Today, 96 TNT 216-16 (Oct. 30,
1996).]
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