Will the IRS accept an "amended" 1040 return claiming a section 165 theft loss? I have proof of a restitution judgment; but I cannot file a Ponzi-Safe Harbor claim because it determines year of loss as the date of the final court judgment, which is 2009 and falls outside of the SOL for filing an amendment. However, Section 165 w/out safe harbor allows for a claim to be filed the year the loss was "discovered" which was 2010-2011. Will IRS deny the amendment claiming loss should have been filed sooner?

Amended Tax Return Section 165 Theft Loss
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Tax Professional Answers

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Rianne Greene
Typically the IRS will accept an amended return for up to three years after the date the return was filed.  So if you found the loss within 2010- 2011 you would need to file an amended return for that year.  A 2011 amended return would fall under the three year statute.  I would recommend filing that amendment as soon as possible as the tax season is coming to a close for this year.  

Rianne Greene
Tax Pros Bookkeeper
Leave a Comment 249 weeks ago

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