Hi
Along with my 2021 taxes, I submitted the form to IRS to be considered as a "Trader". I have checked the qualification guidelines and I am sure I qualify. Is there an IRS website where I can check if my "Trader" status request was accepted? Any way to get that confirmation from IRS?
Thanks
Achieving trader tax status is something you cannot elect when you file your taxes. Instead, you have to notify the IRS ahead of time by making a mark to market selection. This involves providing a tax return from the previous year and Form 4868—the Application for Automatic Extension of Time To File U.S. Individual Income Tax Return—along with a written declaration of your intention to make a mark to market election under section 475(f) of the Internal Revenue Code. The IRS will respond in writing with their decision.
Since this is in affect for the 2022 tax return that you will file next year you have some time to wait for their response to your request ... anything requiring a human to review it is taking a very very long time and I don't believe there is any way to get the info at this time. Make sure the IRS has your correct mailing address if you have moved.
I assume you mean you submitted a 475(f) election. Traders not electing 475(f) submit nothing. when was it submitted? by law it had to be submitted by 4/18/2022 to be valid for the 2022 tax year. approval is automatic. The IRS can still audit your return to see if you qualify.
I've never seen anything on IRS.gov or elsewhere that says they will send an approval letter for your new status.
I know tax topic 429 and I've read it before and again now.
Maybe you can point to the paragraph that says a letter of approval will come from the IRS.