FTB, IRS Guidance for Theft Loss Deductions from Ponzi Schemes
The IRS recently issued Revenue Ruling 2009-9 and Revenue Procedure 2009-20 providing guidance to taxpayers who are victims of losses from Ponzi-type investment schemes. The new guidelines could help victims recoup some losses by seeking reimbursement of up to five years of past tax payments.
At the state level, the FTB said it will follow the IRS lead, and in general, where California law is in substantial conformity with the Internal Revenue Code, federal regs, rulings and procedures are applicable for California purposes.
