In the event that you have become a victim of a fraudulent investment scheme and have lost a significant amount of your investment, you may be able to recover a substantial amount of your losses under the Internal Revenue Code Section 165. This United States Tax Code allows taxpayers to recover between 30 and 40 percent of their losses that have occurred through investing in a fraudulent investment scheme.
Tidy Tax Services has the experts that can help you take advantage of Section 165 relief and maximize the benefits the IRS allows under the tax code.
In most cases, the victims of these types of fraudulent investment schemes will be able to convert their capital stock losses into ordinary losses and offset them against prior, current and future ordinary taxable income. This will allow the taxpayer to reduce the taxes paid in those prior years and receive a refund with interest.
Section 165 Relief Process
In order to carry out Section 165 relief, amendment of prior year’s tax returns needs to take place. In most cases, this is a very complex and technical process that should not be taken lightly. It is critical that anyone attempting to apply for Section 165 relief seek the best professionals possible in order to ensure success throughout the process.