Are you a victim of a scam, a stock broker, or a fraudulent investment scheme? If you were promised returns that never materialized and have lost huge amounts of money, rest assured knowing that all is not lost.
You may be able to recover some of your losses through tax deductions.
Your first impulse might be to take legal action against the person or persons responsible. Many taxpayers do not know that the IRS has a provision for taking losses caused by fraudulent schemes and investments.
Section 165 of the Federal Tax Code entitles taxpayers to possible reimbursement in the tax year the loss is discovered. For victims of situations similar to a Ponzi scheme, you may be able to recover some of your losses by filing a theft loss report.
Contrary to popular belief, once you’ve lost money in a fraudulent investment scheme, it’s not necessarily lost forever. If you work with the IRS, you might be able to get back some of your money. The catch, however, is that you were a regular taxpayer prior to the situation.
The IRS actually goes through the last 3 years of your tax payments and determines where your theft claim should be accelerated. This is, of course, assuming that the scheme is defined as illegal or as a theft. There also has to be a reasonable chance of recovery.
It is a fairly complex process that requires nothing less than the expertise of certified tax professionals. They know the intricacies of the IRS processes and rules, and they will understand how your situation and financials factor into the recovery scheme. Not everyone is considered for recovery schemes such as these, so it is wise to hire a tax professional to represent you.
Our highly qualified team of tax experts at Long Island Tax Resolution Services can help you prepare your theft loss report, following all terms and conditions. We will work to compensate your losses.
Contact us today for help in recovering from of investment fraud.