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by the purchase of securities within a month. To assist him in
deciding which securities to invest or trade in, petitioner used
software that enabled him to receive up-to-date information such
as “Level II NASDAQ quotations” and Dow Jones “real time” data.
For all of 1999, petitioner resided in San Jose, California,
and was employed, full time, by MediaQ, Inc. as a computer chip
engineer. He received wages of $74,699 from his employer in
1999.
Petitioner’s Purported Election Under Section 475(f)
Petitioner did not timely file a Federal income tax return
for 1999. After receipt of the notice, petitioner timely filed
an “imperfect” petition3 on January 22, 2003, which was later
perfected by the filing of an amended petition on March 14, 2003.
Attached to the amended petition is a copy of a Form 1040, U.S.
Individual Income Tax Return, for 1999 together with various
documents attached to that return, including copies of (1) a
purported retroactive election, under section 475(f) (dated March
9, 2003, to be effective January 1, 1999), of the mark-to-market
method of accounting for traders in securities (the election),
and (2) a purported cover letter conveying the election to the
IRS and describing the election as “an application for making
election under section 475(f)”. In the election itself, under
3 The petition was signed by a representative of
petitioner’s who was not admitted to practice before this Court.
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Last modified: May 25, 2011