After hearing so much for so long about the devious Ponzi scheme that Bernie Madoff used to snatch nearly $65 billion from small businesses, individuals, non-profit organizations, and various other entities that invested with him, we have been wondering about the Madoff victims. While Madoff contemplates life and times while doing the jailhouse rock, what of the unsuspecting souls that lost big and small to his borrow-from-Peter-to-pay-Paul scheme, during a time when the economy was also flat-lining?
The Wall Street Journal reported that the Madoff victims caught up in the intricate Ponzi web have begun to receive refund checks from the Internal Revenue Service (IRS) for taxes paid on money that didn’t actually exist.
What can companies expect from the IRS refund process?
Madoff victims were encouraged to file amended returns after the nature of the scheme came to light using the specially-created IRS rule for the Madoff Ponzi scheme victims. The IRS also allowed investors to claim a theft loss on their 2008 returns.
The Wall Street Journal reported that a few small businesses were denied refunds due to a miscalculation of sums and that the companies’ finance teams are working with the IRS to resolve.
Related Resources:
- Madoff Victims Start Getting IRS Refunds (Wall Street Journal)
- IRS Has Check in the Mail for Madoff Victims (WebCPA.com)
- Madoff’s First Jailhouse Interview (FindLaw’s Blotter)
- Securities Law Overview (provided by Bell & Bands PLLC)
- Tax Law News (provided by Law Offices of Jeffrey S Freeman)
You Don’t Have To Solve This on Your Own – Get a Lawyer’s Help
Civil Rights
Block on Trump’s Asylum Ban Upheld by Supreme Court
Criminal
Judges Can Release Secret Grand Jury Records
Politicians Can’t Block Voters on Facebook, Court Rules
