Saturday, January 04 2014
Ponzi-type Investment Schemes for 2013. There are new rules for how to claim a theft loss deduction on Form 4684 due to a Ponzi-type investment scheme. There is a New Section C of Form 4684 for Ponzi-type investment schemes. Section C of Form 4684 is new for 2013. You must complete Section C if you are claiming a theft loss deduction due to a Ponzi-type investment scheme and are using Revenue Procedure 2009-20, as modified by Revenue Procedure 2011-58. Section C of form 4684 replaces Appendix A in Revenue Procedure 2009-20. You do not need to complete Appendix A.
Losses from Ponzi-type investment schemes. If you had a loss from a Ponzi-type investment scheme, check-out: i) Revenue Ruling 2009-9, 2009-14 I.R.B. 735, ii) Revenue Procedure 2009-20, 2009-14 I.R.B. 749, iii) Revenue Procedure 2011-58, 2011-50 I.R.B. 849
If you qualify to use Revenue Procedure 2009-20, as modified by Revenue Procedure 2011-58, and you choose to follow the procedures in the guidance, you must first fill out Section C of Form 4684 to determine the amount to enter on Section B, line 28. Skip line 19 to 27. Section C of Form 4684 replaces Appendix A in Revenue Procedure 2009-20. You do not need to complete Appendix A. If you choose not to use the procedures in Revenue Procedure 2009-20, you may claim your theft loss by filling out Section B, lines 19 to 39, as appropriate.