L.S. Vines - Page 18

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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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