Salil's issue with ProFunds over IRS Publication 550. (Broker caved in!)

Salil's issue with ProFunds over IRS Publication 550
Broker decided to do the right thing (after trying everything else!)

My inquiry at account opening
and Broker's response

1) My initial inquiry about broker's compliance with Publication 550

2) Broker's response assuring compliance

Initial non-compliance by Broker,
My complaint to SEC against Broker,
Subsequent Compliance of Broker

3) Broker's confirmation that lacks "Specification"

4) My complaint against broker to SEC

5) Finally ... Written confirmation from broker that gives "Specification"

I wonder if broker did this in "reasonable" time. Note the delay between trade date and date of written confirmation. Trade date was March 18 2014, and date of written confirmation was May 7, 2014.

So the delay was 50 days !!! ... Is that reasonable time ???

Broker's intent to stop compliance,
and further complaints against the broker

On May 13, 2014 John Hosty of ProFunds called me and informed me that although they've complied with Publication 550 once, they intend to stop complying with IRS Publication 550, when the written confirmations become "excessive".

I requested him to define what is "excessive". He declined. He indicated that I should write letter if I have more inquiry. So I wrote letter. Actually I wrote two. Both are given below.

6) My second complaint against ProFunds to SEC
Letter details unconditional compliance from other brokers.

7) My third complaint against ProFunds to SEC
Letter gives Final Resolution of IRS.

My intent to initiate Arbitration or Mediation, and Broker's response in essence indicating unconditional surrender. :-)

Finally I inquired with breoker if they are committing to send me written confirmation as required by IRS Publication 550; Page 46; Point# 2. Absent commitement, I was going to initiate Arbitration or Mediation.

8) My letter demanding commitment or inquiring about arbitration/mediation

9) Whew ... Finally Letter from ProFunds indicating Commitment!

Useful Links

IRS: Publication 550

IRS: Basis Reporting by Securities Brokers (Final Regulation)

Federal Register: Text of Final Regulation

SEC: How Investinations Work

Excerpts from IRS code/regulation + My comments