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Part III Administrative, Procedural, and Miscellaneous 26 CFR 601.105 Examination of returns and claims for refund, credit or abatement; determination of correct tax liability. (Also Part I, 165;.

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2009-20 provides an optional safe harbor treatment for taxpayers that experienced losses in certain investment arrangements discovered to be criminally fraudulent. Applies to specified fraudulent arrangements for which the discovery year is the taxable year beginning after 12/31/07.

Sec. 165 broadly allows taxpayers to deduct losses "sustained during the taxable year and not compensated for by insurance or otherwise." Some examples of losses that are allowed as a deduction under Sec. 165 include wagering losses (Sec. 165(d)), theft losses (Sec.

Revenue Procedure 2009-20PDF simplifies compliance for taxpayers by providing a safe-harbor means of determining the year in which the loss is deemed to occur and a simplified means of computing the amount of the loss.

The use of the safe harbor is limited to “qualified investors” as defined in Rev. Proc. 2009-20, §4.03. This section effectively precludes persons that had actual knowledge of the investment arrangement's fraudulent nature prior to its becoming known to the general public from using the safe harbor.

Revenue Ruling 2009-9 clarifies several issues regarding the treatment and effect of theft losses resulting from fraudulent investment schemes. Revenue Procedure 2009-20 contains a safe harbor through which electing taxpayers can claim their theft loss resulting from the Madoff scheme in 2008.

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© Copyright 1997-2025
airSlate Legal Forms, Inc.
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Form Packages
Adoption
Bankruptcy
Contractors
Divorce
Home Sales
Employment
Identity Theft
Incorporation
Landlord Tenant
Living Trust
Name Change
Personal Planning
Small Business
Wills & Estates
Packages A-Z
Form Categories
Affidavits
Bankruptcy
Bill of Sale
Corporate - LLC
Divorce
Employment
Identity Theft
Internet Technology
Landlord Tenant
Living Wills
Name Change
Power of Attorney
Real Estate
Small Estates
Wills
All Forms
Forms A-Z
Form Library
Customer Service
Terms of Service
Content Takedown Policy
Bug Bounty Program
About Us
Blog
Affiliates
Contact Us
Privacy Notice
Delete My Account
Site Map
Industries
Forms in Spanish
Localized Forms
State-specific Forms
Forms Kit
Legal Guides
Real Estate Handbook
All Guides
Prepared for You
Notarize
Incorporation services
Our Customers
For Consumers
For Small Business
For Attorneys
Our Sites
US Legal Forms
USLegal
FormsPass
pdfFiller
signNow
airSlate workflows
DocHub
Instapage
Social Media
Call us now toll free:
+1 833 426 79 33
As seen in:
  • USA Today logo picture
  • CBC News logo picture
  • LA Times logo picture
  • The Washington Post logo picture
  • AP logo picture
  • Forbes logo picture
© Copyright 1997-2025
airSlate Legal Forms, Inc.
3720 Flowood Dr, Flowood, Mississippi 39232