I a a day trader, and when I filed my 2022 taxes in April, I attached the request for change my accounting method to MTM according to IRS code 475(f). I was told that my brokerage account needs a letter from the IRS stating that they allowed the change in the accounting method. Is this true? And If so, how do I get this letter since the IRS has not acknowledged the receipt of the letter?
Did you ever make the election and then revoke it?
Otherwise, the change is generally automatic.
There is nothing in the code or regulations that mentions the need to submit a letter from the broker with the filing of the election so who told you this?
@Mike9241 wrote:
There is nothing in the code or regulations that mentions the need to submit a letter from the broker with the filing of the election so who told you this?
I believe @tknewman is referring to some sort of approval (or consent) from the IRS for the election, which is not required unless a previous election was revoked and then another election is made (within a certain period of time after the revocation).