HI yes it is possible to trace ip address of a person with whom you are chatting ...Read the steps given below .
1.First invite or ping that person for a chat .
2. Make sure your all other tabs in browser and other services in computer are closed. If Possible for you then delete all the cookies-cache and browsing history from your browser.
3. While chatting go to Start >- Run >- cmd .
4.After Opening command Prompt Type netstat -an command and hit Enter.
5. Now you will get Ip Address of all the established connections there
After finding the ip address you can easily trace the location of that ip address just by doing whois search for that ip address using sites like Whoisxy.com .....