IRS And State Exam Controversy For Traders (Recording)

14 Oct

Oct 14, 2014 at 1:00 pm EST


Join Green NFH’s Robert A. Green CPA and Mark Feldman, tax attorney in this Webinar.

There’s been an increase in tax exams over trader tax status, cost-basis reporting and related issues. Recently, our CPA firm successfully represented a trader in tax court. State tax authorities are also challenging trader tax status and related Section 475 MTM ordinary loss treatment, trying to avoid issuance of large tax refunds. Learn the latest arguments raised by IRS and state tax authorities on the exam and appeals level, and how to mount a successful defense. In this Webinar, we will cover:

  • Highlights of our recent “small claims” petition filed in federal tax court with favorable outcome.
  • Highlights of recent state tax controversy over trader tax status.
  • IRS cost-basis reporting controversy including tax notices.
  • IRS attacks on weak segregation of investment positions vs. trading business positions and related implications for trader tax status and use of Section 475 MTM ordinary gain or loss treatment.
  • Review of trader tax status requirements.
  • Common mistakes traders and local tax preparers make that invite IRS and state controversy.
  • Questions and answers.

For traders involved with IRS or state tax controversy, we recommend our IRS & State Tax Exam Representation Service.


While I do not day-trade (I prefer swing trading and position trading on stocks), I want to thank you for the great content and webinars that you host. In particular, I thought that Robert Green did an excellent job going through the tax issues that traders encounter including 1256, mark to mark and other provisions. Robert did an excellent job summarizing the key provisions and explaining them in a concise and understandable manner. Unlike other "so called" experts" who hype "trader tax status" and other provisions to lower taxes, Robert realistically conveys both the risks and benefits in a balanced and professional manner. In listening to the seminar, Robert's passions and enthusiasm for the topic was consistent throughout the whole seminar. Lastly, his advocacy for fair and favorable provisions for investors and traders allows him to be well informed about potential legislation/regulation and hopefully to have a positive impact on the process.

I would add that I have a Master's in Taxation from Pace University. I had the benefit of taking classes in the tax treatment of partnerships, corporations and financial instruments. More important, I wrote my thesis on the traders’ tax cases that have come out. In doing my research, I found that Robert Green's books and blog were very informative. I would highly recommend that traders listening to the call to purchase his materials and review the blog. While I cannot personally attest to the quality of Robert's consultations and preparation f tax returns, I believe that Robert has a good understanding of the key issues. Lastly, I would mention it is important to for traders to use a specialist tax accountant who has expertise and experience in this area, and not utilize a "generalist."