Theft Losses
Using Technology to Reduce Purchase Card Fraud
When Bill Webster, an assistant commissioner at the General Services Administration, checked into his hotel in Orlando, Fla., last month to attend a conference, the clerk informed him his government-issued travel card was rejected. Webster, who happens to oversee GSA’s travel, motor vehicle and card services division,was seeing one of his program’s fraud-prevention controls in action. New software thatwas monitoring Webster’s use of his travel card didn’t like what it saw — six fuel purchases in a single day — and it put a hold on the card. Turns out, Webster’s fuel purchases were legit: He rode his Harley Davidson. Read More.
Economic Scrutiny in 2009 Exposes Over 150 Ponzi Schemes
USA Today reports that the number of Ponzi scheme collapses surged this past year to more than triple 2008′s tally. Estimates put investor losses at about $16.5 billion. It was a rough year for Ponzi schemes. In 2009, the recession unraveled nearly four times as many of the investment scams as fell apart in 2008, with “Ponzi” becoming a buzzword again thanks to the collapse of Bernard Madoff’s $50 billion plot. Tens of thousands of investors, some of them losing their life’s savings, watched more than $16.5 billion disappear like smoke in 2009, according to an Associated Press analysis of scams in. Read More.
Proposed Senate Bill Gives Tax and Retirement Relief for Madoff Victims
Victims of Madoff’s elaborate ponzi scheme may receive tax and retirement relief thanks to the newly proposed “Madoff Investors’ Bill of Rights” headed by Charles E. Schumer, D-NY, member of the Senate Finance Committee. This legislation would allow small investors who were victims of fraud to recoup some of their financial losses through a modification of the net operating loss (NOL) carryback law . Currently, large investors already benefit from modified provisions of the (NOL) carryback laws, and this ruling would extend the same benefits to smaller investors or indirect investors by accelerating and increasing contributions to tax-free retirement accounts and allow for withdrawals without penalty for those. Read More.
Tax Planning Strategies & Year-End Considerations
As the end of the year approaches, now is the time to evaluate your business and your personal tax strategies. By taking the time to prepare now, using this checklist, you will be able to develop a clearer picture of what your tax picture will look like while there’s still time to maximize current-year savings. Retirement Planning Look to maximize tax-deductible retirement plan contributions . The following table provides the maximum amounts that can be deferred under several popular retirement plan options during 2009.
In Wake of Madoff Scam, IRS Releases Guidance for Victims of Ponzi Schemes
In order to address the considerable losses incurred by investors in recent Ponzi schemes, the IRS released guidance on two potential ways to reduce losses in the event of a “specified fraudulent arrangement.” The guidance is contained in Rev. Rul. 2009-9 and Rev. Rul. 2009-20 , as well as an IRS FAQ . In general, losses may be recovered as theft losses under Code Sec. 165 and may be carried back to prior years to the extent a Net Operating Loss (NOL) is created. The guidance also provided for certain safe harbor calculations for computing the amount of the theft loss. The guidance is designed to “assist taxpayers. Read More.
In Wake of Madoff Scam, IRS Releases Guidance for Victims of Ponzi Schemes
In order to address the considerable losses incurred by investors in recent Ponzi schemes, the IRS released guidance on two potential ways to reduce losses in the event of a “specified fraudulent arrangement.” The guidance is contained in Rev. Rul. 2009-9 and Rev. Rul. 2009-20 , as well as an IRS FAQ . In general, losses may be recovered as theft losses under Code Sec. 165 and may be carried back to prior years to the extent a Net Operating Loss (NOL) is created. The guidance also provided for certain safe harbor calculations for computing the amount of the theft loss. The guidance is designed to “assist taxpayers. Read More.