[US Tax] Section 475 MTM election - can you still e-file?

V

virw

I got some conflicting information while researching this
- Some sources said that if you file section 475 MTM election , you have to paper file , and attach the election to your tax return. E-file with turbotax will not work.
- A CPA firm said they can e-file even with 475 MTM election.

Does anyone have experience with this? I want to have 475 MTM election but afraid paper-file will cause delays and inaccuracies.
 
I am a tax professional. Trading and the MTM is not my area of specialization, but I know that the MTM election is and how it works.

You are correct that filing a paper return by mail is a bad idea. Due to COVID-19, the IRS is not processing mail in an efficient manner.

The information you are getting is not necessarily in conflict, although I can see why you would put it that way.

Most elections can be made in an electronic return. However, some tax software may not have the capability. I have not used TurboTax in many years, so I cannot address whether the program has the capability of including the election in an electronic return. Within the software itself, in their "help" section, you should be able to perform a search for the phrase mark-to-market, and find an answer. I am fairly certain that TurboTax will allow you to make the election. The question is: once you have made that election, can the return be filed electronically? If the program does not support an electronic return with that election, it will tell you that, and it will become impossible to actually file the return electronically. The program itself will inform you that the return must be filed by mail.

If a CPA has told you that their software can include the election in an electronic return, you can take their word for it. When you file electronically, the firm gets an acknowledgement from the IRS, and they can give you a copy of that acknowledgement.

BMK
 
virw said:
I got some conflicting information while researching this
- Some sources said that if you file section 475 MTM election , you have to paper file , and attach the election to your tax return. E-file with turbotax will not work.
- A CPA firm said they can e-file even with 475 MTM election.

Does anyone have experience with this? I want to have 475 MTM election but afraid paper-file will cause delays and inaccuracies.
More...

Am wondering if you ever figured this out? I also use TurboTax to e-file and am wanting to submit my MTM election statement this year (to be effective for next year), how did you end up doing this?

TIA!
 
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