The 2017 Tax Cut & Jobs Act; Critical Updates for Ponzi Scheme Victims
These I.R.S. publications continue to provide reliable guidance for Ponzi Scheme tax recoveries.
The Internal Revenue Service in the years 2009 published two very helpful documents to guide taxpayer about (1) the law of Ponzi Scheme tax recoveries (The Revenue Ruling 2009-9), and (2) a simplified method of claiming the tax deductions so long as the financial theft met certain standards (The Revenue Procedure 2009-20).
In the updated video below Richard Lehman explains the elimination of non-business theft losses and the continued availability of the “for profit” theft loss. The new Trump 2017 Tax Cut and Jobs Act will no longer allow a theft loss deduction for non income producing endeavors.
In this new presentation, Lehman also explains why it is critical if you have a higher tax bracket losses prior to the year 2018 that the Taxpayer claim as much of those losses in the proper pre 2018 years as possible. This means for most taxpayers at this point that carry back refunds can be achieved for Ponzi Scheme theft losses in the years 2016, 2017 and possibly 2015.
It is also critical to be able to substantiate the discovery of the fraud in a prior year and to maximize the amount to be recovered. This depends upon when the “reasonable prospect” of recovery no longer exists.