Generally an individual trader must have made the automatically approved election in writing between January 1, 2009 and April 15, 2009.  The written document must have been filed (we suggest traders use certified mail with return-receipt-requested) with the IRS office where the trader normally mails his or her tax filings (attached to form 1040, 4868, 1040X etc.). Special, more liberal rules allowed certain individuals and entities such as S-corporations, Trading Partnerships and Limited Liability Companies to elect Mark-to-Market under less restrictive procedures.

At that time the written election document was not available as an IRS "form" but rather you, your tax preparer or attorney must have used a free-form format. This must have indicated: 1) an appropriate description of the election, 2) the first year that you used Mark-to-Market and 3) the specific trade or business (i.e. Schedule C) for which the election is being made.

When you change your method of accounting for gains and losses to the Mark-to-Market method you must also complete an "Application for Change in Accounting Method" form 3115. The properly completed form is then sent concurrently to both the IRS office where you normally mail your tax returns (along with form 1040) and to the national office of the IRS. The form must be filed between the dates January 1, 2010 and October 15, 2010 (we suggest that you use certified mail with return-receipt-requested).


2008/2009 changes: Under the proposed changes found in IRS Notice 2007-88 a pilot program may be started in which the form 3115 would possibly be due "by the last day of the ninth month of the requested year of change."  This could mean that rather than electing mark-to-market no later than April 15, 2009 (with a form 3115 due no later than October 15, 2010), that the date might be September 30, 2011 for both the election and the form 3115.
also see: http://findarticles.com/p/articles/mi_m6552/is_1_60/ai_n31845608/pg_5/

IRS is also clarifying (or maybe muddying the waters depending on how one looks at it) recent court decisions that challenge the concept that a request filed after the ninth month of the requested year of change (and before the next year begins) as being applicable to the succeeding year.  In other words, there will be no late filing extensions allowable under Sec 301.9100 or otherwise.
 

* Arguably certain R.I. taxpayers have until May 11, 2010 if they or their advisor/preparer were directly impacted by the severe storms and flooding hitting beginning march 12, 2010 in Rhode Island, simply write "Rhode Island/Severe Storms and Flooding" in red ink on the tax filings.

RI-2010-11, March 31, 2010
(Updated April 5 to add Bristol county.)

The President has declared Bristol, Kent, Newport, Providence and Washington counties federal disaster areas qualifying for individual assistance.

As a result, the IRS is postponing until May 11 certain deadlines for taxpayers who reside or have a business in the disaster area. This includes the April 15 deadline for filing 2009 individual income tax returns, making income tax payments and making 2009 contributions to an individual retirement account (IRA).

In addition, the IRS will waive the failure to deposit penalties for employment and excise deposits due on or after March 12 and on or before March 29, as long as the deposits were made by March 29.

If an affected taxpayer receives a penalty notice from the IRS, the taxpayer should call the telephone number on the notice to have the IRS abate any interest and any late filing or late payment penalties that would otherwise apply. Penalties or interest will be abated only for taxpayers who have an original or extended filing, payment or deposit due date, including an extended filing or payment due date, that falls within the Postponement Period.

IRS computer systems automatically identify taxpayers located in the covered disaster area and apply automatic filing and payment relief. Affected taxpayers who reside or have a business located outside the covered disaster area must call the IRS disaster hotline at 1-866-562-5227 to request tax relief.

Covered Disaster Area

The counties listed above constitutes a covered disaster area for purposes of Treas. Reg. § 301.7508A-1(d)(2) and are entitled to the relief detailed below.

Affected Taxpayers

Taxpayers considered to be affected taxpayers eligible for the postponement of time to file returns, pay taxes and perform other time-sensitive acts are those taxpayers listed in Treas. Reg. § 301.7508A-1(d)(1), and include individuals who live, and businesses whose principal place of business is located, in the covered disaster area. Taxpayers not in the covered disaster area, but whose records necessary to meet a deadline listed in Treas. Reg. § 301.7508A-1(c) are in the covered disaster area, are also entitled to relief. In addition, all relief workers affiliated with a recognized government or philanthropic organization assisting in the relief activities in the covered disaster area and any individual visiting the covered disaster area who was killed or injured as a result of the disaster are entitled to relief.

Grant of Relief

Under section 7508A, the IRS gives affected taxpayers until May 11, 2010, to file most tax returns (including individual, corporate, and estate and trust income tax returns; partnership returns, S corporation returns, and trust returns; estate, gift, and generation-skipping transfer tax returns; and employment and certain excise tax returns), or to make tax payments, including estimated tax payments, that have either an original or extended due date occurring on or after March 12, 2010, and on or before May 11, 2010.

The IRS also gives affected taxpayers until May 11, 2010, to perform other time-sensitive actions described in Treas. Reg. § 301.7508A-1(c)(1) and Rev. Proc. 2007-56, 2007-34 I.R.B. 388 (August 20, 2007), that are due to be performed on or after March 12 and on or before May 11.

This relief also includes the filing of Form 5500 series returns, in the manner described in section 8 of Rev. Proc. 2007-56. The relief described in section 17 of Rev. Proc. 2007-56, pertaining to like-kind exchanges of property, also applies to certain taxpayers who are not otherwise affected taxpayers and may include acts required to be performed before or after the period above.

The postponement of time to file and pay does not apply to information returns in the W-2, 1098, 1099 series, or to Forms 1042-S or 8027. Penalties for failure to timely file information returns can be waived under existing procedures for reasonable cause. Likewise, the postponement does not apply to employment and excise tax deposits. The IRS, however, will abate penalties for failure to make timely employment and excise deposits due on or after March 12, 2010, and on or before March 29, 2010, provided the taxpayer made these deposits by March 29.

Casualty Losses

Affected taxpayers in a federally declared disaster area have the option of claiming disaster-related casualty losses on their federal income tax return for either this year or last year. Claiming the loss on an original or amended return for last year will get the taxpayer an earlier refund, but waiting to claim the loss on this year’s return could result in a greater tax saving, depending on other income factors.

Individuals may deduct personal property losses that are not covered by insurance or other reimbursements. For details, see Form 4684 and its instructions.

Affected taxpayers claiming the disaster loss on last year’s return should put the Disaster Designation “Rhode Island/Severe Storms and Flooding” at the top of the form so that the IRS can expedite the processing of the refund.

Other Relief

The IRS will waive the usual fees and expedite requests for copies of previously filed tax returns for affected taxpayers. Taxpayers should put the assigned Disaster Designation in red ink at the top of Form 4506, Request for Copy of Tax Return, or Form 4506-T, Request for Transcript of Tax Return, as appropriate, and submit it to the IRS.

Affected taxpayers who are contacted by the IRS on a collection or examination matter should explain how the disaster impacts them so that the IRS can provide appropriate consideration to their case.

Taxpayers may download forms and publications from the official IRS Web site, irs.gov, or order them by calling 1-800-TAX-FORM (1-800-829-3676). The IRS toll-free number for general tax questions is 1-800-829-1040.