In the event a taxpayer in a Ponzi Scheme is clearly a defrauded individual in a financial fraud and that the perpetrators are indicted for the fraud, the taxpayers can have an expedited procedure to deduct their losses from the taxpayer’s income and obtain tax refunds. This expedited procedure is only available in the event there is an indicted and/or proven criminal undertaking which led to the taxpayer’s losses. This is described in full in the “Safe Harbor Rules”.
(segment 14)
