October 25, 1993
IRS Issues Mark-To-Market Guidance
WASHINGTON - Responding to numerous requests from brokers,
banks, insurance companies and others, the IRS today issued a
revenue ruling that began the process of providing substantive
guidance under the new mark-to-market rules of the Internal Revenue
Code. Additional guidance will be issued in the near future.
The ruling addresses several issues, including which taxpayers
qualify as "dealers in securities" under the new statute and which
securities may be exempt from being marked to market because they
are "held for investment". The ruling also explains how affected
taxpayers should make the change from their present method of
accounting to the new mark-to-market method.
Taxpayers who are not sure whether they qualify as dealers were
reassured that they can make "protective identifications" of their
securities held for investment without increasing the likelihood
that they will be treated as a dealer under the provisions.
Rev. Rul. 93-76 appears in the Internal Revenue Bulletin
1993-35, dated Nov. 8, 1993.
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