in taxable income for 1996 because no timely sec. 1042 election had
been made; on Oct. 17, 2001, decedent filed petition contesting defi-
ciency; on Oct. 29, 2001, Commissioner received second 1996 income
tax return signed by decedent on Oct. 27, with (1) attached state-
ment of election to defer gain, (2) company statement consenting to
application of secs. 4978 and 4979A, and (3) statement of purchase
of qualified replacement property, all predated to Mar. 4, 1997,
Court determined estate (as decedent's successor) could not defer
recognition of gain resulting from sale to ESOP because decedent
had failed to file timely election by due date of tax return as
required by sec. 1042. Estate of Clause v. Commissioner
See BAD DEBTS; UNITED STATES TAX COURT.