The IRS will be aware of your trading activity by reviewing, if they choose to do so, your trading activities as listed on the statement you will need to attach to Form 4797, Sale of Business Property. When you elect Mark to Market accounting, you will be completing Form 4797 and attaching a statement to such form that lists all your transactions in a manner consistent with the columns of information on Form 4797. While TurboTax supports Form 4797 (and you will need TurboTax CD/download, not TurboTax online), presently there is no way to upload and attach your transaction list to Form 4797. Thus, you will need to paper mail your return to the IRS.
To follow-up on the post from @AmyC, filing as an S-Corp is a tax election. An S Corp is not a legal entity in the same way as your LLC. Thus, you should file the Mark-to-Market election statement in your name as the owner of your LLC. The MtM election statement you will file by the tax due date (April 2023, and there are no extensions allowed for the MtM election) is prospective in that the IRS will know that for tax year 2023 you have elected the MtM accounting method.
Yes, you can mail your tax return to the IRS. In fact, as there is no way to attach the MtM election statement to your return, you will need to paper mail your return to the IRS. Include Form 3115 with your return.
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