Marasmius tageticolor was first described scientifically by English mycologist Miles Joseph Berkeley in 1856, from collections made in Brazil.

"[1] In 1898, Otto Kuntze proposed transferring the fungus to Chamaeceras,[2] a genus that has since been folded into synonymy with Marasmius.

[3] M. tageticolor is classified in section Sicci, subsection Siccini, series Leonini of the genus Marasmius.

The smooth stipe measures 3–4 cm (1.2–1.6 in) long by 1 mm wide, and has a beet red to dull brown colour.

The basidia (spore-bearing cells) are club-shaped, four-spored, and hyaline (translucent), with dimensions of 26–30 by 7–8 μm.