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securities traders. Petitioner then spoke with Dr. Sullivan by
telephone and asked Dr. Sullivan for a citation of the exact
provision that would allow securities traders to deduct their
losses as ordinary losses. Dr. Sullivan checked with his day-
trader contacts, who gave him a citation of section 475(f). Dr.
Sullivan relayed the citation to petitioner, who in turn relayed
it to Mr. Sellers.
Mr. Sellers informed petitioner that, according to Rev.
Proc. 99-17, 1999-1 C.B. 503, in order for a section 475(f)
election to be effective for the 2000 taxable year, petitioner
had to file the election by April 17, 2000, the due date for his
1999 tax return. Mr. Sellers then informed petitioner that he
should qualify for an extension of time within which to make the
section 475(f) election under section 301.9100-3, Proced. &
Admin. Regs. (section 9100 relief).3
Mr. Sellers recommended that petitioner hire other tax
counsel to make the section 475(f) election and to request
section 9100 relief. Petitioner hired the Washington, D.C., law
firm of Caplin & Drysdale to prepare and file the section 475(f)
election and request for section 9100 relief. On July 21, 2000,
Caplin & Drysdale, on behalf of petitioner, submitted to
respondent a “Taxpayer Election of Mark to Market Accounting
Under Section 475(f)” (section 475(f) election), along with a
3Sec. 9100 relief is discussed in detail infra.
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