[Code of Federal Regulations]
[Title 26, Volume 7]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR1.615-9]

[Page 518-519]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 1_INCOME TAXES--Table of Contents
 
Sec. 1.615-9  Notification under Tax Reform Act of 1969.

    (a) In general. An election under section 615(e) with respect to 
exploration expenditures paid or incurred prior to January 1, 1970, 
shall be treated as an election under section 617(a) with respect to 
exploration expenditures paid or incurred after December 31, 1969.
    (b) Exception. Paragraph (a) of this section shall not apply to an 
election under section 615(e) if the taxpayer files the notice described 
in paragraph (c) of this section or the taxpayer revokes his election 
under section 615(e) before the date prescribed for the filing of notice 
under paragraph (c)(2) of this section.
    (c) Filing of notice--(1) In general. The notice not to have a 
section 615(e) election treated as a section 617(a) election shall be 
made in a statement filed with the Director of the Internal Revenue 
service center with whom the taxpayer's income tax return is required to 
be filed. If the election is made within the time period prescribed for 
filing an income tax return (including extensions thereof) for the first 
taxable year during which the taxpayer pays or incurs, after December 
31, 1969, expenditures which would be deductible by the taxpayer under 
section 617(a) if he made a valid election to deduct exploration 
expenditures under such section, the statement shall be attached to the 
taxpayer's income tax return for such year. If the statement is filed 
after the time prescribed for filing such return but before the 
expiration of the period (described in paragraph (e) of this section) 
for filing the notice, the statement must be signed by the taxpayer or 
his authorized representative. The statement shall be filed even though 
the taxpayer charges to capital account all such expenditures paid or 
incurred by him after December 31, 1969. If the taxpayer desires, he may 
file this statement by attaching it to his return for a taxable year 
prior to the first taxable year in which he pays or incurs after 
December 31, 1969, expenditures which would be deductible by him under 
section 617(a) if at such time he had in effect a valid election under 
such section.
    (2) Information to be furnished. The notice shall clearly state that 
the taxpayer elects not to have his section 615(e) election treated as 
an election under section 617(a). The notice shall state the first 
taxable year for which the section 615(e) election was effective and 
with whom and where the election was filed.
    (d) Effect of notification. A taxpayer who has filed notice pursuant 
to this section may make an election under section 617(a) with respect 
to exploration expenditures paid or incurred after December 31, 1969, 
without revoking either his section 615(e) election or his notice under 
this section.
    (e) Time for filing notice. A taxpayer may not file the notice 
described in paragraph (c)(1) of this section after the expiration of 
the 3-year period beginning with the date prescribed by section 6072 or 
other provision of law for filing the taxpayer's income tax return for 
the first taxable year in which the taxpayer pays or incurs after 
December 31, 1969, expenditures which would be deductible by him if he 
made the election under section 617(a). This

[[Page 519]]

3-year period shall be determined without regard to any extension of 
time for filing the taxpayer's income tax return.

[T.D. 7192, 37 FR 12941, June 30, 1972]