Ponzi scheme victim and manually prepared Form 4684


B

Brew1

will be using Rev. Procedure 2009-20 for client to claim 95% of loss
as theft (rather than capital loss). The only copy of "Appendix A",
which is a required attachment, that I can find is from the IRS
Revenue Bulletin of April 6, 2009. I created one but was wondering if
there was a usable form available?
 
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B

Brew1

Well, I'm going with the form I created. The 4684 looks quite
bizarre, but the instructions specifically say not to fill any other
sections out. Also interesting with this procedure is that the perp
only has to be arrested, you don't have to wait for a conviction.
 
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D

Dick Adams

Brew1 said:
will be using Rev. Procedure 2009-20 for client to claim 95% of loss
as theft (rather than capital loss). The only copy of "Appendix A",
which is a required attachment, that I can find is from the IRS
Revenue Bulletin of April 6, 2009. I created one but was wondering
if there was a usable form available?
The answer is "IT DEPENDS". And it depends on what client bought in
the Ponzi scheme. If this is a Madfff client, Congress may have
created special rules for them. Otherwise it depends on whether the
purchased an interest in an investment (capital loss) or loaned
funds to a company (bad debt).

Dick
 

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