MTM election denied????

Discussion in 'Professional Trading' started by sunggong, Nov 28, 2008.

  1. Hi guys,

    I would like to know if anyone else has experienced this situation.

    I started trading full-time in mid 2006, so it was too late to elect for the MTM accounting method for 2006.

    So on 4/14/2007, when I filed an extension form with an IRS (form 4868), I sent out an MTM election statement, so that I can start using that MTM accoutning method starting in 2007 tax year.

    Then I filed form 3115 when I filed my 2007 federal tax return on October 2008 to complete the change to the MTM accounting method. (Also sent a copy of 3115 to the D.C. address, as instructed.)

    Now I just received a letter from the IRS in Washington D.C. saying that I'm not eligible for the MTM method because I filed the statement as part of my form 3115 and my form 3115 wasn't filed until after the 4/15/2007 due date. (I did send a COPY of the letter that I sent originally on 4/14/2007 in my tax return.)

    What's going on here? I did send the statement on 4/14/2007.

    They are saying that I did NOT send the statement letter by 4/15/2007, but I did. How can I prove this? I do have a copy of the letter obviously.

    I also have the post office certified mail receipt dated 4/14/2007 to the IRS, but it obviously doesn't state the content I sent, which were form 4868 and the MTM statement letter.

    I have to wait until Monday to contact the person at IRS, but I'm just wondering if anyone else has gone through this.

    If they just keep insisting that they didn't receive the statement letter from 4/14/2007, I'm screwed no?

    Thoughts? Any advice?
  2. nkhoi


    explain it was not the original, the original was sent before the due date. As long as they understand you follow the IRS instruction then you should be ok. Make sure to point out exactly where is the official instruction. I found those people mostly didn't know much about their own law; be simple , be concise is the way to go.
  3. I had a similar problem with the feds once and got it taken care of by my United States senator.

    The problem was resolved and they even sent me a rebate.