Do you know whether the IRS will in certain circumstances allow fraudulent losses of IRA funds to be deducted from income for tax calculations?
Please see our answer to Question 62. The IRS issued guidance concerning treatment of losses arising from ponzi schemes that can be found at the following sites: The IRS Commissioner identified revenue rulings and procedures related to Ponzi schemes at: http://www.irs.gov/newsroom/article/0,,id=205374,00.html. Embedded in the foregoing link are links to the actual revenue ruling: http://www.irs.gov/pub/irs-drop/rr-09-09.pdf; and the revenue procedure: http://www.irs.gov/pub/irs-drop/rp-09-20.pdf. We urge investors to consult either a tax advisor or contact the IRS directly about tax issues stemming from your investment or any distribution from the Receivership that you may receive.
Related Questions
- Can the 10% additional tax for an early withdrawal from an IRA be deducted in the Adjusted Gross Income section of Form 1040 as a penalty on early withdrawal of savings?
- Can the 10% penalty for an early withdrawal from an IRA be deducted in the Adjusted Gross Income section of Form 1040 as a penalty on early withdrawal of savings?
- Why aren you including information on certain Selects, single country funds, fixed income, and fund of funds?
