Fraud Recovery Group can help you!
For Tax Professionals
Fraud Recovery Group helps victimized investors who qualify for a special deduction under Section 165(c)(2) of the Internal Revenue Code. We provide:
- A comprehensive analysis of the circumstances of the investment loss.
- An independent verification that a "theft" occurred as defined by the IRS Code.
- Determination of how much of the loss is likely recoverable.
- A strategic analysis of how carry-back and/or carry-forward loss deductions will benefit the client.
- A free, no obligation estimate of the total amount of Federal and State refunds for which amended returns would be filed.
- Assistance in preparation and submission of all necessary forms and supporting documentation.
- Effective communication and coordination with IRS agent(s) working on the amended return(s).
- Representation in the event of an IRS audit
The theft loss deduction permitted by Code Section 165(c)(2) offers several important advantages over other deductions available to individual taxpayers.
- A theft loss deduction is an "ordinary" deduction not subject to the limitations on capital losses imposed by Code Section 1211.
- A theft loss deduction is excluded from the phase-out of itemized deductions required by Code Section 68.
- A theft loss deduction is not a "miscellaneous itemized deduction" subject to the 2% floor imposed by Code Section 67.
- A theft loss that exceeds a taxpayer’s gross income generates a "net operating loss" not subject to limitations imposed on nonbusiness deductions of individual taxpayers. A net operating loss may be carried back for three years or forward for 20 years. Code Sections 172(b)(1)F.
- A theft loss can be used to reduce tax liability to zero without liability for alternative minimum tax (AMT).
The Fraud Recovery Group welcomes involvement by CPAs, attorneys and other investor representatives. We have our own team of experienced CPAs and other tax experts to properly amend past or current tax filings.
Contact us to confidentially discuss your client’s situation.