Ponzi Scheme Tax Loss

Taxation and Refunds from a Clawback in a Ponzi Scheme

The object of this video is to teach professional advisors and victims of Ponzi scheme losses and Clawbacks of Ponzi Scheme profits and principal on how to maximize their tax refunds form such losses and claw backs.

The topics covered will include:

  • Review of tax treatment and tax recoveries from direct Ponzi Scheme losses;
  • Review of tax treatment and tax recoveries from Clawbacks of Ponzi Scheme income and profits;
  • The maximization of tax loss from the Clawback of Ponzi Scheme principal;
  • How to maximize net operating losses;
  • The review of the Safe Harbor for Ponzi Scheme losses that expedites the refunds of tax losses;
  • Review of Internal Revenue Service Revenue rulings and Procedures that apply to Ponzi Scheme losses and Claw back losses;
  • Advice on how to maximize business theft losses;
  • The appropriate use of the tax mitigation section from income repaid under claim of right;
  • The appropriate use of loss carry forwards and loss carry backs as a result of Ponzi Scheme losses and Clawbacks;
  • Review of the limitations on the use of Ponzi Scheme losses.

Other Ponzi Scheme Articles

1. Three Background Reports

This is a series of reports focusing on the tax benefits available as a result of Ponzi Scheme losses.

These Reports are not intended to be and cannot serve as legal advice to any reader. Each taxpayer has their own unique factual situation which is going to need to be reviewed by tax advisors and litigation counsel before any legal conclusions can be reached.

2. Favorable Tax Consequences – Ponzi Schemes and The Clawback

Most of us are familiar with the concept of the Ponzi Scheme. An investment built on phony profits that crashes and burns, financially devastating many. What is less familiar is the fact that an investor in a Ponzi Scheme cannot only lose all of their investment. Investors in Ponzi Schemes can also be forced to pay back additional moneys earned form the Ponzi Scheme years before it exploded. This is what is known as a clawback.

3. Ponzi Schemes and Theft Losses – What to do if there is NO Safe Harbor?

There are many reasons a taxpayer victim of a Ponzi Scheme will either not fit in the Safe Harbor or will be forced to waive valuable tax rights in the event they choose the Safe Harbor. Therefore it makes sense to study how to deal with the I.R.S. if you have a theft loss and you will not or cannot use the Safe Harbor.