I am pleased to announce another successful settlement for a client.
IRS denied a big deduction based on a Ponzi type investment stating the taxpayer had claimed the deduction in the wrong year. It must be the year it came to his attention and only up to the amount lost especially if there is a chance to recover some in the future.
The matter was set to go to trial in Miami, but I reached agreement he would deduct 80% in the year the loss was claimed and 20% in the year in which there was certainty he had lost everything. That year is still open to claim the 20%. Protective filings were made by his accountant.
The turning point was making clear the evidence we would present to back-up the client’s claim. This convinced the IRS Counsel to approach me with a settlement offer. The client saves the costs of going to the US Tax Court in Miami.
PLEASE review our other past successes – US$ 3,4bn with clients paying out on average less than 3% to IRS and other tax authorities.