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EDUCATION CENTER
GTT RESOURCES: MTM: PRIVATE LETTER RULING
See our Updated Trader Tax Center pages.
OLDER CONTENT: We cover Section 475 MTM in chapter 2 of Green's 2012 Trader Tax Guide
Consider filing a private letter ruling (PLR) to elect mark-to-market accounting (MTM) IRC 475 within 6-months of the election deadline. For example, individuals and partnerships must elect MTM by April 15th of the current year, so a PLR for relief must be filed by October 15th.
First visit our "Missed Mark-to-Market Accounting" Web page
to learn more. Click here.
Next see our "Extensions of time to make MTM elections" Web
page. Click
here.
Hurray! There is a recent tax court case ruling that over turned an IRS
denial of a private letter ruling seeking this relief (for a late MTM
IRC 475 election filing). See the full story and news on our Blog
(May 12, 2006).
Before this latest tax court victory, we used to say the following. The
PLR procedure is painstaking and expensive, and for traders seeking relief
to use MTM, the chance of success is extremely small. To date, the IRS
Web site has published only three PLRs for traders seeking to use MTM,
and all three have been denied. See our discussion of one such PLR below.
Now we think your chances may be much better. One key is to show you are
not using hindsight. Learn more in our Blog
story on the subject.
Here are some recent and unsuccessful PLR rulings:
www.irs.gov/pub/irs-wd/0209052.pdf
www.irs.gov/pub/irs-wd/0209053.pdf
www.irs.gov/pub/irs-wd/0209054.pdf
www.irs.gov/pub/irs-wd/0304006.pdf
A recent private letter ruling denied a MTM extension.
Private Letter Ruling 200429011, 07/16/2004, IRC Sec(s). 475
Accounting methods—extension to make election to use mark-to-market
accounting method—denial due to lack of unusual and compelling circumstance.
You can find this PLR at www.irs.gov.
It is useful to read the IRS rulings in all 4 cases. In each case, the
IRS discussed Reg § 301.9100-1 "Extensions of time to make elections."
The trader did not qualify for Reg § 301.9100-1 relief. Click here
to learn more about Reg § 301.9100-1
For general information on private letter rulings,
search that term at www.irs.gov.
If you are interested in a PLRs, contact us at info@greencompany.com or call us.
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Ready for a consultation with a GTT CPA |
Within this consultation, we can consult you on a private letter ruling and other options available, if any.
