Philadelphia partner David Shechtman, with the assistance of associate Leila Fusfeld, has written an article for the Journal of Taxation of Investments on tax issues facing victims of Ponzi schemes. In the wake of the Bernard Madoff scandal, it became apparent to victims seeking tax advice on the amount and timing of possible loss deductions that authoritative guidance was lacking. The Internal Revenue Service promulgated Rev. Rul. 2009-9, on March 17, 2009, the facts of which specifically address a loss from a Ponzi scheme.
David, chair of the Corporate & Securities Practice Group’s Business Tax Team, focuses on the guidance provided under the Revenue Ruling regarding the timing, amount, and character of theft loss deductions for Ponzi scheme losses and the optional safe harbor treatment under the Revenue Procedure.
Click on the PDF link above to view the full article.