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Strategies & Market Trends : Active Internet Traders - tax questions & answers -- Ignore unavailable to you. Want to Upgrade?

To: Colin Cody who wrote (26)	3/10/1999 3:54:00 PM
From: Colin Cody	Read Replies (1) \| Respond to of 31

MARCH 18, 1999 is the date that Trader Status MTM elections are being significantly changed. . For any delinquently filed 1997 return or timely filed 1998 return filed (postmarked) prior to March 18, 1999, a taxpayer MAY EASILY ELECT MARK-TO-MARKET (even on his own). We discussed this issue here on S.I. last October and the consensus was that I was wrong, that the MTM election had to be made by 10/15/98. Well the IRS has said the actual date is March 17, 1999 (please don't ask me why that date was chosen). Effective March 18, 1999 the rules change. If you get your delinquently 1997 return filed by 3/17/99 (even if INCOMPLETE) you are "in"!! You MUST complete any incorrect/incomplete filings with a form 1040X no later than June 16, 1999. Failure to follow these new procedures will jeopardize any Mark-to-Market elections made. For returns filed AFTER March 17, 1999 new procedures are in place, and for 1999 returns (due April 15, 2000) the MTM election MUST be made by a separate written filing with the Commissioner NO LATER THAN April 15, 1999. IMPORTANT SUMMARY: On April 16, 1999 ALL securities-trader Mark-to-Market elections not yet made will be forever BARRED for any tax-year prior to calendar year 2000. NO EXTENSIONS OF TIME are provided for in the law. As a matter of fact extensions are specifically prohibited. All these new rules effectively take most any valid "home-made" elections by taxpayers without the advice of their CPA a thing of the past. Trader-Status has made it to the "Big Leagues" now. We are among a growing legion of On-Line Traders and IMO traders are well advised to retain an experienced tax professional before trying to make the MTM election on their own. And as it just so happens, yours truly is one! (grin). Seriously, whether you use a local Tax Attorney or CPA or use someone out-of-State, you really need to be aware of all the rapidly changing rules in this area! Colin Cody, CPA Monroe CT traderstatus.com