I posted a previous thread about an embezzlement where client got cheated out of $75K. The return has been filed now deductng this amount. I am assuming that the IRS would like to look at this deduction carefully. She has proof as to where the money went to (3rd party) and the chronicle list of events that happened. Has FBI report. Do you know of anything else that would be needed?. Anybody else have this happen, and how did you come out on this?
-
-
I am not in my office but I seem to recollect that after the Madoff scandal there was all sorts of articles in trade publications regarding this issue.Originally posted by zeros View Post
About 5 years back one of my clients got cheated out of approx $50K by a builder who absconded after breaking ground! Taxpayer had police report, attorney letter, complaint ack from the state attorney general's office, etc. as proof and we filed a casualty loss. No issues with IRS. We paper filed everything.Taxes after all are the dues that we pay for the privileges of membership in an organized society. - FDR -
Why Paper-Filed?
Why was the return paper-filed? Additional documents sent?Originally posted by ATSMAN View PostComment
-
Correct. We swamped the IRS with enough documents so that they had all the records needed if it was ever audited!Originally posted by zeros View PostTaxes after all are the dues that we pay for the privileges of membership in an organized society. - FDRComment
Comment