Section C: Theft loss deduction for Ponzi-type investment scheme using the procedures in IRS Revenue Procedure 2009-20

If you claim a theft loss deduction for a Ponzi-type investment scheme, and you meet both of the following conditions, fill out Section C in lieu of Appendix A in IRS Revenue Procedure 2009-20:

You qualify to use IRS Revenue Procedure 2009-20, as modified by IRS Revenue Procedure 2011-58.

You choose to follow the procedures in the IRS guidance.

For more information about claiming a theft loss deduction from a Ponzi-type investment scheme, see Itemized deductions to review the following guidance:

IRS Revenue Ruling 2009-9, 2009-14 Internal Revenue Bulletin 735

IRS Revenue Procedure 2009-20, 2009-14 Internal Revenue Bulletin 749

IRS Revenue Procedure 2011-58, 2011-50 Internal Revenue Bulletin 849