Absent the enactment of a relief provision by Congress, the IRS is not authorized to provide for the non-recognition of gain for stop-loss orders executed on the day of the flash crash in the markets, May 6, 2010. An SEC-CFTC report said that the flash crash was triggered by large trader automated sell algorithms triggered during a an unusually turbulent day for the markets. According to an IRS Information Letter, 2010-0188, various non-recognition provisions in the Code are not applicable to the situation.Read the complete blog post here.
Correcting misconceptions about markets, economics, asset prices, derivatives, equities, debt and finance
Tuesday, October 19, 2010
Flash Crash Caused Unavoidable Taxes For Investors
Posted By Milton Recht
From "Congress, Not IRS, Must Provide Tax Relief from Flash Crash" by James Hamilton on Jim Hamilton’s World of Securities Regulation blog:
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