[Code of Federal Regulations]
[Title 26, Volume 3]
[Revised as of April 1, 2008]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR1.194-4]

[Page 281-282]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 1_INCOME TAXES--Table of Contents
 
Sec. 1.194-4  Time and manner of making election.

    (a) In general. Except as provided in paragraph (b) of this section, 
an election to amortize reforestation expenditures under section 194 
shall be made by entering the amortization deduction claimed at the 
appropriate place on the taxpayer's income tax return for the

[[Page 282]]

year in which the expenditures were incurred, and by attaching a 
statement to such return. The statement should state the amounts of the 
expenditures, describe the nature of the expenditures, and give the date 
on which each was incurred. The statement should also state the type of 
timber being grown and the purpose for which it is being grown. A 
separate statement must be included for each property for which 
reforestation expenditures are being amortized under section 194. The 
election may only be made on a timely return (taking into account 
extensions of the time for filing) for the taxable year in which the 
amortizable expenditures were made.
    (b) Special rule. With respect to any return filed before March 15, 
1984, on which a taxpayer was eligible to, but did not make an election 
under section 194, the election to amortize reforestation expenditures 
under section 194 may be made by a statement on, or attached to, the 
income tax return (or an amended return) for the taxable year, 
indicating that an election is being made under section 194 and setting 
forth the information required under paragraph (a) of this section. An 
election made under the provisions of this paragraph (b) must be made 
not later than,
    (1) The time prescribed by law (including extensions thereof) for 
filing the income tax return for the year in which the reforestation 
expenditures were made, or
    (2) March 15, 1984, whichever is later. Nothing in this paragraph 
shall be construed as extending the time specified in section 6511 
within which a claim for credit or refund may be filed.
    (c) Revocation. An application for consent to revoke an election 
under section 194 shall be in writing and shall be addressed to the 
Commissioner of Internal Revenue, Washington, DC 20224. The application 
shall set forth the name and address of the taxpayer, state the taxable 
years for which the election was in effect, and state the reason for 
revoking the election. The application shall be signed by the taxpayer 
or a duly authorized representative of the taxpayer and shall be filed 
at least 90 days prior to the time prescribed by law (without regard to 
extensions thereof) for filing the income tax return for the first 
taxable year for which the election is to terminate. Ordinarily, the 
request for consent to revoke the election will not be granted if it 
appears from all the facts and circumstances that the only reason for 
the desired change is to obtain a tax advantage.

[T.D. 7927, 48 FR 55851, Dec. 16, 1983]