The Trustee has provided the following note:
"Investors are advised to follow the guidance provided by the IRS in Revenue Ruling 2009-9 and Revenue Procedure 2009-20. The IRS has guidance under the webpage: “Help for Victims of Ponzi Investment Schemes”. A link to this page is: https://www.irs.gov/newsroom/help-for-victims-of-ponzi-investment-schemes.
Revenue Ruling 2009-9 - provides guidance on determining the amount and timing of losses from these schemes, which is difficult and dependent on the prospect of recovering the lost money (which may not become known for several years). A copy of the revenue ruling is attached.
Revenue Procedure 2009-20 - 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. A copy of the revenue ruling is attached."
Please note, this referral to IRS guidance is not tax advice, and investors should discuss their individual situations with a licensed financial professional or a tax attorney.
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