The IRS said it would allow some tax relief and issue refunds to investors who lost money they invested with Bernard Madoff.
IRS Commissioner, Douglas Shulman, told Congress today that the agency is issuing guidelines for taxpayers who are victims of losses from Madoff’s Ponzi scheme.
At least these refunds will bring some relief to those who have lost money with the crook. The commissioner said that these investors paid taxes on earnings that have been reported from “phantom” profits, and he even went as far as saying, “some of the investors are entitled to a “theft loss” deduction.”
According to some experts, the IRS could be out about $17 billion in lost tax revenue from refunds to Madoff’s investors.