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Old 02-05-2012, 12:40 AM
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Form 4684. Casualties and Theft

in 2008 i invested $12,000. in what was found out a month later to be a ponzi scheme. i got one payment of $840. before that was found out. i never filed anything on my taxes that year. in 2011 i got a total of $4,521. back. so my total loss was $6639.
i am having a heck of a time figuring out the language in form 4684 and looking for help.



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Old 02-05-2012, 08:36 PM
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i am having a heck of a time figuring out the language in form 4684 and looking for help.”----> As the victim of financial fraud, Ponzie Scheme in 2008, you may be able to deduct some of your losses against your income. The IRS will let you deduct your losses from Ponzi scheme ripoffs. No word on whether losses due to the wire, the pigeon drop, advance payment or three card monte are allowable. The IRS has announced it will allow favorable ordinary loss treatment for investment theft losses. After Madoff scandal of late 2008, the IRS developed specific procedures to streamline and simplify procedures for deducting losses due to Ponzi-type schemes and other forms of investment fraud. You can figure your loss in Section B of IRS Form 4684. You deduct fraud losses in the same manner as theft losses.You need to fill out Appendix A of Internal Revenue Bulletin 2009-14, which you can download from the link in Resources, and write "Revenue Procedure 2009-20" across the top of IRS Form 4684.You need to return Form 4684, along with any supporting documentation with your tax return to the IRS.
Please visit the IRS Website here:Ponzi Scheme Questions and Answers



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Old 02-05-2012, 11:28 PM
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my confusion is that the discovery year was 2008 and i never did anything on my taxes that year because i knew i would eventually be getting money back and because i just didnt know i had to. so now that ive gotten all the money back in 2011 that i think i ever will, i dont quite know what to do. all the articles talk about "year of discovery"



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