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Under this authority, the Commissioner issued Rev. Proc. 99-
17, 1999-1 C.B. 503, which provides the procedure for taxpayers
to make a mark-to-market election. Generally, Rev. Proc. 99-17,
sec. 5, 1999-1 C.B. at 504-505, provides that the taxpayer must
file a statement which describes the election being made, the
first taxable year for which the election is effective, and the
trade or business for which the election is made. This statement
must be filed not later than the due date of the Federal income
tax return (without regard to extensions) for the taxable year
immediately preceding the election year and must be attached to
that tax return or to a request for an extension of time to file
that return. Id.
The fact that petitioners did not file any statements with
their tax returns for the years immediately preceding the years
in issue (i.e., 1998, 1999, and 2000) would indicate that a mark-
to-market election was not made. Therefore, we conclude that
petitioners did not make a mark-to-market election in compliance
with Rev. Proc. 99-17, supra, to affect the years in issue.4
The salient fact is that petitioners attempted to file a
mark-to-market election by amending their petition long after the
4 Rev. Proc. 99-17, 1999-1 C.B. 503, also requires that the
taxpayer obtain the consent of the Commissioner to change his
method of accounting to mark-to-market accounting. Id., sec. 5,
1999-1 C.B. at 504-505. We make no decision on the applicability
of this requirement because the issue in the instant case is
resolved by petitioners’ failure to meet the due date of the
mark-to-market election.
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Last modified: May 25, 2011