Your firm has a new individual client, Carla Navarro, who has been assigned to you for preparation of the current year's tax return. Upon review of Carla's tax returns from prior years, you notice that she reported a large capital gain from a stock redemption in 2013. Upon further investigation, you determine that stock in the corporation was owned by some of Carla's family members at the time of the redemption and that the only way the redemption would have qualified for sale or exchange treatment would have been if Carla had availed herself of the family attribution waiver for a complete termination redemption. You establish that the redemption terminated Carla's direct stock ownership in the corporation, that she had no interest in the corporation since the redemption, and that she retained all records pertaining to the redemption. However, you cannot find any evidence that the notification agreement required of a family attribution waiver was properly filed.
When asked about the missing agreement, Carla indicated that she knew nothing about any required agreement and that if such an agreement was required, her previous CPA should have taken care of it. Your partner has asked you to research whether it is still possible to file an effective family attribution waiver agreement for Carla. In a memo for the tax file, summarize the results of your research.