Sunday, March 24, 2013

Ponzi Clawback "victims" get a break from IRS

Ponzi scheme benefactors, i.e. those who actually got more money from the Ponzi scheme than they put in, often face clawback lawsuits from the authorites / receiver / bankruptcy trustee. However, IRS just gave them a break... They need to pay back the clawback, but they can choose to deduct that in EITHER the year they actually paid it back, or file an AMENDED return and deduct it from income of the year this "fake" income was actually received, i.e. reset it to zero.

For example, say the Zeek Rewards "net winner" who got a good income from Zeek in 2012, but is facing a clawback from receiver Ken Bell in 2013 and decide to pay it, can choose to deduct that payment for either 2012 (when the fake income was received) or 2013 (when the clawback was paid).

How this affects the taxe implications would require some number crunching by a proper tax preparer and/or tax attorney.

http://www.palmbeachdailynews.com/news/business/new-irs-rules-may-aid-ponzi-clawback-victims/nScfP/

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