I.R.S. Plans a Deduction for Madoff Victims
Lawyer News
The Internal Revenue Service will allow victims of Bernard L. Madoff’s investment fraud to claim a lucrative tax deduction related to the bulk of their losses, the I.R.S. commissioner testified Tuesday morning before the Senate Finance Committee .
The commissioner, Douglas H. Shulman, told lawmakers that the agency was offering guidelines for taxpayers who are victims of losses from Ponzi schemes like Mr. Madoff’s.
The plan represents the first time that the I.R.S. has come forward with a policy regarding how it will treat Mr. Madoff’s victims. The subject has been a point of debate and anxiety for the victims and their accountants, given the uncertainty and lack of clarity in the tax code over how the matter should be dealt with.
The plan, which applies to victims of all Ponzi schemes, is likely to provide major relief to the victims of Mr. Madoff, who pleaded guilty last week to orchestrating what prosecutors say is the largest Ponzi scheme ever — one that could reach $65 billion and cover 13,000 investors.
The plan would ease existing rules governing what are known as theft-loss deductions, which are losses claimed by investors who are cheated by their investment advisers and others in Ponzi schemes and other frauds.
Under the plan, which has been reviewed by the congressional offices, the I.R.S. will allow investors who are not suing Mr. Madoff to claim a theft-loss deduction equal to 95 percent of their investments, minus any withdrawals, reinvested gains and payouts from Securities Investor Protection Corporation, the government-chartered fund set up to help protect investors of failed brokerage firms.
Investors who are suing Mr. Madoff, and who thus may have some prospect of recovery, can claim a deduction equal to 75 percent of their investments.
Related listings
-
Ex-US congressman from Oregon faces tax charges
Lawyer News 01/30/2009A former Oregon congressman was indicted Thursday on federal money laundering and tax charges that prosecutors said were related to an investment fraud scheme that bilked victims out of more than $10 million.Former Rep. Wes Cooley, who represented Or...
-
Calif. court rejects lawsuit against tax increases
Lawyer News 01/09/2009An anti-tax group will consider new legal action after a California appeals court tossed out a lawsuit that sought to block tax increases passed by Democrats in the state Legislature, the group said Thursday.Citing separation of powers, the state's 3...
-
Race driver Castroneves heads to court in tax case
Lawyer News 10/03/2008Two-time Indianapolis 500 winner and "Dancing With the Stars" champion Helio Castronoves was set to appear in court Friday to face allegations he used offshore accounts to hide millions of dollars in income from the Internal Revenue Service.The 33-ye...
Victorville CA DUI defense Attorneys
The outcome of a DUI defense will have a long-term effect on anyone’s life, making the decision to receive legal representation an easy one. The fact is, most people accused of a DUI are first offenders with no criminal background. Whether this is your first run in with the law or you have had previous convictions, you are in need of a DUI defense attorney.
The charges you are facing for a DUI range from fines, a 12-month suspension on your license and worst-case scenario, prison time. Your attorney will be able to analyze your situation to decide the best way to go about your case.
Our attorneys know the tricky ways to challenge all of the DUI tests and know how to claim improper collection of evidence. We will be able to negotiate on your behalf and free you from charges and help you keep your drivers license. The DUI process can last up to several months, we can make this process easier on you. .