Please Help with this tax question

I elected Mark-to-Market accounting last year for the tax year 2001. Although I sent the application via certified mail, I haven't received a response from IRS since last April. Does anyone have the same experience? Should I just go ahead with the MM accounting method this year? I appreciate your help.

stockopt.

 

I could be wrong on this but taxpayers filing a 3115 for procedures that are "automatic" (which includes MM) don't receive acknowledgements.

You definitely must receive their permission to change back, though, in the event you ever want to do so.

 

I've read the same thing...no confirmation for the initial election.

 

Yes, much the same as any return. Consequently, it's certainly crucial to retain a copy of the form and any indicia of mailing.

 

Thanks, ktm and Optrader. I'm glad to know I am not alone.

Stockopt.

 

I have been trying to day trade for the past 7 months.
I have made alot of trades buying and selling. Do I have to report each and every trade to the IRS on my taxes? Could somebody
give me the answer on what the heck I am supposed to do now?

 

I think you need to report every trader to IRS even lost trades. IRS will decide if your account is taxable or not.

 

There is more than one approach here. However, of paramount importance is that your Sch D totals agree with the gross proceeds reported on your 1099-B; expect a letter from the IRS requesting an explanation if they don't.

Some traders make copies of the monthly statements (which show all trading activity) they receive from their brokers and attach them to their returns. Others don't bother attaching the statements but merely report the trades (all short term) as "various" and enter the gross amounts in the appropriate columns. Yet another approach is to show each and every trade on Sch D, using reams of D1s. The last is probably the most technically correct but, IMHO, is a waste of paper and I sincerely doubt the IRS really appreciates that. I think they'd prefer your totals match the numbers on the 1099s than anything else.

 

Optrader what is IMHO that you had in your response?
Do I get this 1099 from my broker? Or just use his monthly statements that I get?

 

In My Humble Opinion.

Your broker should send you a 1099-B if you've had any sales in your account during the previous year. You probably should have received one by now (or should shortly) since I believe they have to be mailed by January 31st.