What is less familiar is the fact that an investor in a Ponzi Scheme cannot only lose all of their investment. Investors in Ponzi Schemes can also be forced to pay back additional moneys earned from the Ponzi Scheme years before it exploded. This is what is known as a clawback.
With the right evidence and the law on your side, theft losses from Ponzi schemes can lead to the same refunds as the Safe Harbor and even more, since interest will be paid on the refund from the time the taxes were paid in certain situations. This might not occur under the Safe Harbor, the Taxpayer may be better off without the Safe Harbor in many situations.
The use of Code Section 1341 can increase tax refunds and interest payments by 100% and more.
By Richard S. Lehman, Esq., of Richard S. Lehman; Boca Raton, FL Today’s business climate is extremely treacherous for all sizes and types of business. Whether a suit is won or lost, frivolous or legitimate , there are major distractions.…
The general principles discussed herein are not intended to be legal or tax advice
and taxpayers should consult with their individual legal, accounting and tax advisors.