tag:blogger.com,1999:blog-1237058264713608619.post6730106787329126057..comments2021-08-26T13:47:01.378-04:00Comments on The Ponzi Scheme and Tax Loss: Ponzi Schemes and Theft Losses - What to do if there is NO Safe Harbor?Unknownnoreply@blogger.comBlogger3125tag:blogger.com,1999:blog-1237058264713608619.post-38461334428382625662010-10-14T02:22:56.279-04:002010-10-14T02:22:56.279-04:00Thank-you for your reply and also for your excelle...Thank-you for your reply and also for your excellent blog and work on behalf of fraud victims.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-1237058264713608619.post-22370881792678246602010-10-13T12:26:23.745-04:002010-10-13T12:26:23.745-04:00That is a very good comment. I would simply like ...That is a very good comment. I would simply like to say that I concur with the conclusion left by the Anonymous blogger. - Richard S. LehmanLTL_bloggerhttps://www.blogger.com/profile/12869878179164424266noreply@blogger.comtag:blogger.com,1999:blog-1237058264713608619.post-4382938287721225462010-10-09T01:37:54.168-04:002010-10-09T01:37:54.168-04:00Regarding clawbacks, you said : "The Safe Har...Regarding clawbacks, you said : "The Safe Harbor insists that the Taxpayer waive their right to make use of the Internal Revenue Code Section 1341 in the event they must repay money in a Clawback."<br /><br />I believe there are circumstances in which this would not be true.<br /><br />For example, some of the feeder fund companies which invested in a ponzi scheme such as Madoff offered two (or more) limited partnerships (lets call these funds "A" and "B"). Lets assume an investor in fund "A" fortuitously cashed out 100% of their principal and phantom profits and immediately reinvested some the phantom profits into fund "B" which subsequently suffered a total loss. In that case, even if the taxpayer filed for their fund "B" theft loss under the safe harbor and was subsequently subject to a clawback for fund "A" phantom profits, the safe harbor would not preclude a claim of right recovery for the fund "A" clawback since Section 6.02 of Rev. Proc. 2009-20 (the safe harbor) requires the taxpayer to agree "Not to apply the alternative computation in section 1341 with respect to the THEFT LOSS DEDUCTION ALLOWED BY THIS REVENUE PROCEDURE." (emphasis added). In this scenario, since the claim of right computation would be a recovery with respect to the clawback, and not with respect to the loss claimed on the tax return under the safe harbor, the safe harbor would not preclude the use section 1341.Anonymousnoreply@blogger.com