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IRS Casualty & Theft Filing

IRS Casualty & Theft Filing requires Form 4684. Click on the following links for the form and instructions.

Form 4684

Form 4684 Filing Instructions

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March 17th, 2009, 1:11 pm MST | Category: Madoff News, Tax & Accounting |

6 comments to IRS Casualty & Theft Filing

  • Floyd
    February 16th, 2010 at 12:05 pm

    Does IRS Code Sec 165(c)(3)covering casualty losses specifically state that a theft loss of traditional IRA funds are not deductible as a theft loss and that “adjusted basis” as defined in this regulation equals “tax basis?” IRS opinions and letter rulings are not upheld by the federal tax courts. The tax courts are bound to follow the regulations as they are written. Could the tax courts allow these deductions as theft losses as are spelled out in the regulations? But then again, could perhaps the IRS by some wild tangent successfully contend that the taxpayer took a taxable distribution when taking the theft loss? What have prior court cases over this issue shown?

  • Joe
    July 2nd, 2009 at 5:10 am

    Joe - you can assume that the IRS will dissallow this deduction and assess penalties (yeah, perhaps even fraud.) You’re taking a position that you have advised to be incorrect & know to be wrong. Sorry for your loss, but if you had recieved the IRA funds, they would have been taxable - you have no basis for taking a loss.

  • Joe
    April 1st, 2009 at 4:19 am

    I am a Madoff investor whose IRA funds were invested. I intend to file Form 4684 for the full amount of my initial investment with Madoff. Can I assume it’s clear the IRS will deny this deduction? What additional action(s) should i expect them to take, if any?

  • Ron
    March 31st, 2009 at 7:24 am

    As indicated on The Wall, the IRS has not stated any new position regarding the deduction of IRA theft losses, which means that IRA losses are not deductible. Many investors are justifiably very upset by this position. The IRA loss is generally not considered “basis”, and therefore, not deductible. Congressional pressure will probably be required for a change in position here.

    Ron

  • Harriet H. Johnson
    March 30th, 2009 at 1:28 pm

    Has the IRS decided to allow the casualty and theft filing for IRA’s lost to Madoff?

  • morrey berkwitz
    March 18th, 2009 at 2:15 pm

    IT APPEARS THAT THE AVERAGE MADOFF INVESTOR WILL NEED HIS ACCOUNTANT’S HELP WITH FORM #4684. THANK YOU FOR ALL THE INFORMATION.