Losses from Ponzi-type investment schemes

The IRS has issued guidance to assist taxpayers who are victims of losses from Ponzi-type investment schemes.

If you qualify to use IRS Revenue Procedure 2009-20, as modified by IRS Revenue Procedure 2011-58, and choose to follow the procedures in the guidance, first fill out Section C to determine the amount to enter on Section B, line 28. Skip lines 19 through 27.

Section C replaces Appendix A in IRS Revenue Procedure 2009-20. You do not need to complete Appendix A.

For more information, see the instructions for Section C and the above revenue ruling and revenue procedures.

If you choose not to use the procedures in IRS Revenue Procedure 2009-20, you may claim your theft loss by filling out Section B, lines 19 through 28, as appropriate.

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Losses from Ponzi-type investment schemes

Official source

The IRS has issued guidance to assist taxpayers who are victims of losses from Ponzi-type investment schemes.

If you qualify to use IRS Revenue Procedure 2009-20, as modified by IRS Revenue Procedure 2011-58, and choose to follow the procedures in the guidance, first fill out Section C to determine the amount to enter on Section B, line 28. Skip lines 19 through 27.

Section C replaces Appendix A in IRS Revenue Procedure 2009-20. You do not need to complete Appendix A.

For more information, see the instructions for Section C and the above revenue ruling and revenue procedures.

If you choose not to use the procedures in IRS Revenue Procedure 2009-20, you may claim your theft loss by filling out Section B, lines 19 through 28, as appropriate.