Generally an individual  trader must have made the automatically approved election in writing between February 8, 1999 and October 15, 1999. The written document must have been filed (we suggest traders use certified mail with return-receipt-requested) with the IRS office where the trader normally mails his or her tax filings (attached to form 1040, 4868, 1040X etc.).

At that time the written election document was not available as an IRS "form" but rather you, your tax preparer or attorney must have used a free-form format. This must have indicated: 1) an appropriate description of the election, 2) the first year that you used Mark-to-Market and 3) the specific trade or business (i.e. Schedule C) for which the election is being made.

When you change your method of accounting for gains and losses to the Mark-to-Market method you generally (see special rule below) must also complete an "Application for Change in Accounting Method" form 3115. The properly completed form is then sent concurrently to both the IRS office where you normally mail your tax returns (along with form 1040) and to the national office of the IRS. The form must have been filed between the dates March 18, 1999 and October 15, 1999.

Special rule for year 1998 tax returns filed with the IRS prior to March 18, 1999:
For 1998 returns filed prior to March 18, 1999 the above rules are ignored and the following rules pertaining to 1997 returns were applicable: