L.S. Vines - Page 8

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          six-page letter outlining the reasons petitioner should qualify             
          for section 9100 relief to make the section 475(f) election for             
          the taxable year 2000.  The letter also stated that petitioner              
          would file a formal private letter ruling request.  Also enclosed           
          with the section 475(f) election and the six-page letter was a              
          “protective” Form 3115, Application for Change in Accounting                
          Method.                                                                     
               The Form 3115 stated that petitioner intended to adopt an              
          accounting method for his new securities-trading business, not              
          change an accounting method for an existing business.  An                   
          attachment to the Form 3115 stated in pertinent part:                       
               The taxpayer desires to adopt a new method of                          
               accounting for securities which are held in connection                 
               with his trade or business as a trader in securities to                
               the mark to market method of recognizing gains and                     
               losses as described in Section 475(f).                                 
               *        *        *        *        *        *        *                
               The taxpayer is not requesting any change in the                       
               accounting methods used in his trade or business as an                 
               attorney and since the year 2000 is his first year in                  
               the trade or business of trading securities he is                      
               adopting a mark to market accounting method with regard                
               to his trade or business of trading securities.                        
               *        *        *        *        *        *        *                
               The taxpayer does not have to make any section 481(a)                  
               adjustment because he was not engaged in the trade or                  
               business of being a trader in securities prior to the                  
               year 2000.  He is adopting a mark to market method of                  
               accounting for his trade or business as a securities                   
               trader which did not begin until 2000.                                 
               *        *        *        *        *        *        *                






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