Tax treatment for Inventment Fraudulent Schemes

[Mai]

Does anyone has experience in preparation of theft loss as result of Fraudulent Schemes? It's similar fraudtlent schemes like Madoff, the client and other victims had filed a case with FBI, and has letter from Dept of Justice in file.

I read some articles exlaining the ruling/guidance issued by IRS on March 17, 09, but not sure how to apply those special tax treatment in ATX. Based on the guidance, the investment theft loss is not subject to the $100 per event or 10% AGI limit and the deduction can be treated as business deduction for NOL purposes. I wonder if anyone has experience can share how they imply the tax treatment for 2008 return.

much appreciated!!

Mai

[michaelmars]

FO madoff they are allowing a 5 year carryback but i don;t know if it will apply to anyone else. also prosys fx issued an update with special forms to use just for this and yet they still advise not to file them yet till the bugs are worked out and also you don't know how the states are going to handle it, they may decouple.

we have about 150 people in madoff so sometime in may we will be experts in handling it if you want to contact me then.

[Mai]

Thanks for the information. We have filed extension because I am not sure how to handle this. What prosys fx you were referring? Is that different software?

[Lion EA]

ProSystem fx by CCH. Very nice software, indeed.