Fraud Recovery Group, Inc.

Q.  Why can’t my tax professional do this refund for me instead of FRG?

A.

  All 165 refund requests must be supported with expert opinions and specific documented evidence.  The necessary requirements are contained in the IRS tax code and rulings in legal cases that go back to 1913. If your request does not have all the required documents, your request will be denied.

The specific calculations required to prepare an amended return are not that complicated.  On the other hand, the needed additional documentation and substantiation required by the IRS to avoid a denial are complex and detailed as well as customized to fit each investor’s circumstances.

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Q.  Why are you telling me to do this now, and my attorney/CPA is telling me to wait for further Court results, like a conviction?

A.

The last thing FRG wants is for the IRS to deny your filing for a refund under 165(c)(2).  Remember, FRG only gets paid if you get a refund.  Consequently, we have absolutely no incentive to recommend you file for a tax refund prematurely.

Specifically to avoid premature filing and prior to even looking for injured investors in a potential 165(c)(2) qualifying investment, FRG spends substantial time -- often months -- investigating the matter and the actions of the individuals running the investment company or program.  A poorly run or mismanaged company does not automatically qualify investors for 165 relief.  There must be some kind of illegal or unethical business practice involved.  Qualifying events can be a litany of things, but the IRS rules do not require this activity be completed to the point of a conviction or imprisonment before investors are permitted to recover a tax refund.  We know this because in the past four years of completing more than 1200 filings, we have successfully obtained tax refunds for investors in situations in which no conviction had yet taken place. 

In fact, the IRS requires an investor to take their 165 deduction “in the year the loss was discovered.”  Please check with us because if FRG is already working for three or four months on the case in which you’re involved, it is likely that some investors ALREADY have their refund.

We know your investment is ready for 165 treatment or we would not be contacting you.  Furthermore, the IRS pays interest on your refund but the interest does not start until they receive your amended returns.  Every day you wait costs you money.

 

The only thing FRG does is 165 work.  Your tax professional or advisor is likely not familiar with the complex rules associated with section 165 of the tax code nor the intricacies of IRS handling of 165 refund filings.

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Q.   How long will it take to get my refund?

A.

  From the time we receive your signed contract with the prior tax returns we requested from you, it takes us about three weeks to get your amended returns prepared (four to five weeks in tax season, Feb 1st – April 15th).  Once we receive the amended returns from you with your signature, we file the initial year of your loss immediately and coordinate multi-year filings based upon our experience with the IRS and their method of processing 165 requests.

The initial year’s refund (we refer to this as the year of discovery) normally takes three to four months.  Other years’ refunds follow shortly thereafter.  As a rule of thumb, the larger the refund, the longer it will take.  But don’t forget, the IRS is adding interest to the refund from the date they receive the filing.  The interest you receive from the IRS can be substantial.  We do not take a fee out of the interest you receive.  That is all yours.  Do expect a 1099 from the IRS, though, for the year in which you receive the interest.

Those investors for whom we file state tax refund requests in addition to the federal requests should receive their state tax refund for a given year in about 3 to 4 weeks after the Federal notice of approval for that year is received.

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