Neil Tipograph wrote an extensive article in “The CPA Journal” to provide guidance to tax professionals for individuals who invested directly with Bernard L. Madoff Investment Securities, LLC. More specifically, he addresses the steps to be taken by tax professionals and their clients during 2009 related to the preparation of 2008 federal income tax returns and prior-year amended returns.
Tax professionals can serve an important role in assisting individuals victimized by Madoff’s alleged Ponzi scheme. They can help clients accumulate information for the claim form to be submitted with the Madoff trustee and they can prepare amended tax returns for all open years that will effectively reverse the phantom income reported by Madoff during the open years. Moreover, they can prepare 2008 returns claiming a theft loss deduction for some portion of the phantom income reported on tax returns closed by statute.
Madoff’s alleged Ponzi scheme is a developing story with very few facts known at this time. As details are uncovered, the recommendations provided by Neil may also change.
You may read Neil’s article at: