Tax Resolution Services for Victims of Investment Fraud

While the list of investors allegedly defrauded by Bernie Madoff's $50 billion scheme continues to grow, experienced tax professionals are advising victims to take advantage of tax benefits that can help them recover their financial losses.

According to tax expert Michael Rozbruch, taxpayers affected by one of Wall Street's biggest Ponzi schemes can claim an "ordinary" (versus a "capital") loss deduction under section 165 of the IRS tax code.

These victims of investment fraud may qualify for a little known tax break that until now, not many people have been eligible for," said Rozbruch, founder and CEO of Tax Resolution Services, Co., a company that provides affordable solutions to people with tax problems.

To maximize tax benefits, taxpayers can offset their ordinary income, up to the amount of the fraud loss (in the year of discovery) and carry back their losses to previous years. This helps recuperate any previously paid taxes while minimizing their future tax obligations.

"For instance, if you've lost $100 million in this scheme, you can recoup $30 to $40 million of that in taxes," said Rozbruch. "I've helped people in this situation before and it's incredibly rewarding to help victims wiped out by fraud regain their financial welfare."

While there are clear tax benefits to deducting a fraud loss, Rozbruch points out that it is an incredibly technical and a complicated process that will certainly put taxpayers under IRS scrutiny. "To recover your losses, you will need to go back and amend your tax returns, which means you will inevitably be audited," he says. "My best advice is to have experienced professionals help you through the process so you can successfully turn your financial life back around."

Tax Resolution Services is dedicated to providing affordable solutions to businesses and individuals who find themselves in trouble with the IRS. Their team of expert tax attorneys, enrolled agents and CPAs has a success rate of 90% - second to none in the industry - and an Offer in Compromise Settlement Rate of $0.13 on the dollar. For more information or to receive a FREE tax relief consultation, visit or call 818-774-1813.

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