Interactive Brokers Forex Tax Reporting?

Quote from Hurricane:

I use IB's year end summary as well to reconcile my +'s and -'s to USD to determine forex P/L that needs to be reported. Basically it's whatever is left after accounting for foreign dividends, gain/loss on foreign stock sales, foreign tax withholding, commissions on forex trades paid in USD, etc. I then report the net gain/loss as a single line item on form 6781.

Reporting as "ordinary income" is completely incorrect. It's a capital gain/loss for traders and hobbists and is normally subject to 60% long term/40% short term tax treatment regardless of the holding period.
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Forex is Section 988 ordinary gain or loss by default. If a trader wants capital gains and loss treatment, they must file a contemporaneous internal election - otherwise known as a capital gains election. We make a case for going further into Section 1256g lower 60/40 tax rates on major currencies if you don't take or make delivery. But, spot is not clearly allowed in Section 1256g, as only forwards are mentioned in 1256. Few retail traders have access to forwards.

If you claim lower 60/40 tax treatment on Form 6781 and have not filed an opt-out election, then you are incorrect in our view. If forex was Section 1256g by default, the broker would have to issue a Section 1256 1099 and they rightfully do not.
 
Robert, please see my post above. What I don't understand is, how come IB does not have to reflect the loss in forex on the tax form, so that it apppears that my aggregate profit is (in my case) $6,800 higher, and it is only to be found in annual transaction summary print-out?
Can I request a corrected 1099 form to be issued?
Thanks for your input.
Ivo
 
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