Ronald A. and Carol J. Lehrer - Page 6

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          Commissioner, 90 T.C. 753, 754 (1988).  We conclude that there is           
          no genuine issue of material fact regarding the question raised             
          in respondent’s motion for partial summary judgment, and a                  
          decision of that question may be rendered as a matter of law.               
               Respondent argues that even if Mr. Lehrer was a “trader in             
          securities” during the years in issue, he failed to make an                 
          effective mark-to-market election pursuant to Rev. Proc. 99-17,             
          1999-1 C.B. 503.  Petitioners concede that they did not make a              
          mark-to-market election on their tax returns but argue that an              
          effective mark-to-market election was made on their first                   
          amendment to petition to this Court.  Further, petitioners argue            
          that Rev. Proc. 99-17, supra, lacks “precedential value as it               
          simply announces the Service’s position.”                                   
               A taxpayer engaged in a trade or business as a trader in               
          securities is eligible to elect to recognize gain or loss on any            
          security held in connection with his trade or business at the               
          close of the taxable year as if the security were sold for its              
          fair market value at yearend.  Sec. 475(f)(1)(A)(i);2 see Chen v.           

               2    SEC. 475(f).  Election of Mark to Market for Traders in           
               Securities or Commodities.--                                           
                    (1) Traders in securities.--                                      
                         (A) In general.--In the case of a person who is              
                    engaged in a trade or business as a trader in                     
                    securities and who elects to have this paragraph apply            
                    to such trade or business--                                       
                                                             (continued...)           





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