DEFRAUDED INVESTORS

An investor that has been taken in and defrauded by a trusted advisor may feel particularly sensitized to and skeptical of professionals offering the benefits of a plan to address their losses through a tax recovery. This raises various questions, such as:

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 this particular application of the tax law only a few times in their career while IFRN deals with these issues everyday!