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On October 27, 2000, Caplin & Drysdale submitted to
respondent on behalf of petitioner a formal private letter ruling
request seeking section 9100 relief for his 2000 section 475(f)
election (section 9100 relief request). Respondent required
petitioner to pay a $5,000 fee to file the section 9100 relief
request.
When petitioner filed his section 9100 relief request on
October 27, 2000, the 2000 taxable year had not yet closed and
petitioner’s tax return for the 2000 taxable year was not yet
due. Respondent had not imposed any accuracy-related penalty
under section 6662 with respect to either the 1999 or 2000
taxable year.
On January 17, 2001, petitioner filed his Form 1040 for his
2000 taxable year, reporting all items based on the assumption
that his section 9100 relief request would be granted.
Petitioner reported a net loss of $26,768,761 from his securities
trading business on Schedule C of his Form 1040, attached Form
8275, Disclosure Statement, regarding his section 475(f)
election, and also attached a copy of the section 475(f) election
filed on July 21, 2000.4
4Respondent’s technical case history indicates that
respondent told petitioner’s representative during a telephone
conference on Mar. 26, 2001, that “the Form 3115 and statement
are not binding on us and that he should tell the taxpayer to
file a protective election for 2001.” The technical case history
also indicates that, during a separate telephone conference on
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