EDUCATION CENTER
GTT RESOURCES: EXTENSIONS: MTM EXTENSIONS

Lots of traders missed the mark-to-market (MTM) election for IRC 475(f) by the due date of April 15th for the current tax year. Without MTM, a trader is stuck with "capital loss" treatment and can not deduct their trading losses as "ordinary losses." This significantly reduces the traders opportunity for net operating loss refunds.

Visit our Missed MTM page to learn more about this subject. Then elect MTM for the current tax year by April 15th.

If you miss the MTM election, then read below.

Late current year MTM elections
If you act by Oct. 15th, you may be able to receive an extension of time to file your current year MTM election. Reg § 301.9100-1 "Extensions of time to make elections" provides relief for late elections. Note the maximum extension period is 6-months. The MTM election due date was April 15th, so the extended due date is Oct. 15th.

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). Click here to visit our private letter ruling page to learn the procedure.

Late prior year MTM elections
Sorry, if you seek relief under Reg § 301.9100-1 for prior years, you are too late. The maximum extension period is 6-months.

If you need help with a Reg § 301.9100-1 "Extensions of time to make elections", contact us ASAP at info@greencompany.com or call us.

For background on this page, see

Missed Mark-to-Market Accounting. Click here.
Private Letter Rulings. Click here.

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