[Code of Federal Regulations]
[Title 26, Volume 6]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR1.466-4]

[Page 293]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 1_INCOME TAXES--Table of Contents
 
Sec. 1.466-4  Manner of and time for making election under section 
373(c) of the Revenue Act of 1978.

    (a) In general. Section 373(c)(2) of the Revenue Act of 1978 (92 
Stat. 2865) provides an election for taxpayers who satisfy the 
requirements of section 373(c)(2)(A) (i) and (ii) of the Act. The 
election is made with respect to a method of accounting for the 
redemption costs of discount coupons used by the electing taxpayer in a 
continuous period of one or more taxable years ending before January 1, 
1979. The election must be made in the manner prescribed by this 
section. The election does not require the prior consent of the Internal 
Revenue Service.
    (b) Manner of and time for making election--(1) General rule. Except 
as provided in paragraph (b)(2) of this section, the election under 
section 373(c) of the Revenue Act of 1978 is made by filing a statement 
of election containing the information described in paragraph (c) of 
this section with the taxpayer's income tax return for the taxpayer's 
first taxable year ending after December 31, 1978. The election must be 
made not later than the time prescribed by law (including extensions 
thereof) for filing the income tax return for the taxpayer's first 
taxable year ending after December 31, 1978. Thus, the election may not 
be made with an amended income tax return for such year filed after the 
time prescribed (including extensions) for filing the original return.
    (2) Transitional rule. If the last day of the time prescribed by law 
(including extensions thereof) for filing a taxpayer's income tax return 
for the taxpayer's first taxable year ending after December 31, 1978, 
falls before December 3, 1979, and the taxpayer does not make an 
election in the manner prescribed by paragraph (b)(1) of this section, 
an election is made under section 373(c) of the Act and this section 
with respect to a continuous period if--
    (i) Within the time prescribed by law (including extensions thereof) 
for filing the taxpayer's income tax return for the taxpayer's first 
taxable year ending after December 31, 1978, the taxpayer has made a 
reasonable effort to notify the Commissioner of the taxpayer's intent to 
make election under section 373(c) of the Act with respect to the 
continuous period, and
    (ii) Before January 2, 1980, the taxpayer files a statement of 
election containing the information described in paragraph (c) of this 
section to be associated with the taxpayer's income tax return for the 
taxpayer's first taxable year ending after December 31, 1978.
    (c) Required information. The statement of election required by 
paragraph (b) of this section must indicate that the taxpayer 
(identified by name, address, and taxpayer identification number) is 
making an election under section 373(c) of the Revenue Act of 1978 and 
must set forth the taxable years in the continuous period for which the 
election is made. The statement of election should be made on the same 
form 3115 on which the taxpayer has made a statement of election under 
section 466. The Form 3115 need contain no information other than that 
required by this paragraph or paragraph (c) of Sec. 1466-3.

[T.D. 8022, 50 FR 18478, May 1, 1985]