TaxProf Blog

IRS Provides Tax Relief for Madoff Investors

March 17, 2009

The Senate Finance Committee held a hearing today on Tax Issues Related to Ponzi Schemes and an Update on Offshore Tax Evasion Legislation. Here are the member and witness statements:

Max Baucus (Chair)
Charles Grassley (Ranking Member)
Douglas H. Shulman (Commissioner, IRS)
Michael Brostek (Director of Tax Issues, GAO)
William Josephson (Fried, Frank, New York)

In connection with the hearing, the IRS issued guidance for investors in Madoff's Ponzi scheme:

Rev. Rul. 2009-9, 2009-14 I.R.B. ___ (Apr. 6, 2009)
Rev. Proc. 2009-20, 2009-14 I.R.B. ___ (Apr. 6, 2009)

Press and blogosphere coverage:

Associated Press, IRS Giving Relief to Some Madoff Investors
Bloomberg: IRS Says Madoff Victims Can Claim Theft Losses
Huffington Post:
- House Tax Chairman Opposes Using Tax Code to Recoup AIG Bonuses
- IRS: Madoff Victims Tax Relief
New York Daily News: Madoff Victims to Get Break From IRS
New York Times DealBook:IRS Plans a Deduction for Madoff Victims
Roth & Co.: IRS Throws St. Patrick's Day Party For Madoff Victims
Tax Girl: What About Those Darn AIG Bonuses?
Wall Street Journal: IRS to Issue Guidance to Aid Victims of Madoff, Other Ponzi Schemes
Washington Post: Congress Looking at New Taxes on AIG Bonuses

About the Author

Paul Caron was named Duane and Kelly Roberts Dean of Pepperdine University School of Law on June 1, 2017. Dean Caron joined the Pepperdine faculty in 2013 after serving as the Dorothy and Leonard Straus Distinguished Visiting Professor of Law in the spring semesters of 2010 through 2013. He served as Associate Dean for Research and Faculty Development at Pepperdine in 2015-2017. Before coming to Pepperdine, he was Associate Dean of Faculty and Charles Hartsock Professor of Law at the University of Cincinnati College of Law.

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3 responses to “IRS Provides Tax Relief for Madoff Investors”

Roth & Company, P.C.

March 18, 2009

More thoughts on IRS Madoff relief

Our initial thoughts on the IRS relief for Ponzi scheme victims seem to hold up after a days reflection. Tax…

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Roth & Company, P.C.

March 18, 2009

More thoughts on IRS Madoff relief

Our initial thoughts on the IRS relief for Ponzi scheme victims seem to hold up after a days reflection. Tax…

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Roth & Company, P.C.

March 18, 2009

More thoughts on IRS Madoff relief

Our initial thoughts on the IRS relief for Ponzi scheme victims seem to hold up after a days reflection. Tax…

Loading…
Roth & Company, P.C.

March 18, 2009

More thoughts on IRS Madoff relief

Our initial thoughts on the IRS relief for Ponzi scheme victims seem to hold up after a days reflection. Tax…

Loading…
Roth & Company, P.C.

March 18, 2009

More thoughts on IRS Madoff relief

Our initial thoughts on the IRS relief for Ponzi scheme victims seem to hold up after a days reflection. Tax…

Loading…
Roth & Company, P.C.

March 18, 2009

More thoughts on IRS Madoff relief

Our initial thoughts on the IRS relief for Ponzi scheme victims seem to hold up after a days reflection. Tax…

Loading…
Roth & Company, P.C.

March 18, 2009

More thoughts on IRS Madoff relief

Our initial thoughts on the IRS relief for Ponzi scheme victims seem to hold up after a days reflection. Tax…

Loading…
Roth & Company, P.C.

March 18, 2009

More thoughts on IRS Madoff relief

Our initial thoughts on the IRS relief for Ponzi scheme victims seem to hold up after a days reflection. Tax…

Loading…
Roth & Company, P.C.

March 18, 2009

More thoughts on IRS Madoff relief

Our initial thoughts on the IRS relief for Ponzi scheme victims seem to hold up after a days reflection. Tax…

Loading…