ACCOUNTING

A word to tax professionals:

To restate, it is always Investment Fraud Recovery Network, LLC's ("IFRN") desire to coordinate our efforts with the tax professionals. The client stays your client and your fees are paid directly to you by your client. IFRN does not actually file the tax returns. IFRN provides the forensic background and audit support.

Can't my current tax professional process my Section 165(c)(2) Theft Loss deduction?

The bottom line is, yes, indeed an experienced tax lawyer or CPA is certainly qualified to provide this service. However, the §165(c)(2) claim must be supported by expert witness reports, authenticated documentation and various calculations. The IRS has asserted in legal cases for decades that a claim for a deduction is a matter of "legislative grace" and thus the burden of proof is entirely on the taxpayer. Each taxpayer's position includes a unique set of facts.

Of course, Investment Fraud Recovery Network, LLC ("IFRN") involves their client's tax professionals of each step along the way. It is frequently the case that once IFRN's service is explained to the client's CPA, the tax professional is glad to have the forensic support of IFRN's team. After all, many of the most experienced CPA's will see their application of the tax law only a few times in their career while IFRN deals with these issues everyday!

Many accountants are concerned about the filing of a 165(c)(2) theft deduction prior to an actual criminal conviction. The case law makes it clear that a criminal conviction is not required. There are many reasons why a conviction may have not occurred in the particular issue that your clients have asked you to address. Our experience is that the SEC or FBI do not pursue cases unless there are many, many zeros involved in the theft. In circumstances where the amount is too small to attract the attention of the federal authorizes, getting state prosecutors to address a very arduous task as well. Further, even when prosecutions are commenced, many plea deals or other "shortcuts" fall short of a conviction.

IFRN provides the extensive research necessary to support the theft opinion. Please understand that a poorly run or mismanaged company or program is not something that automatically qualifies for the IRC §165(c)(2) theft deduction.