The National Directory of Certified Public Accountants

Ask A CPA - Ponzi Scheme Losses

Ponzi Loss Recovery - Do I File An Amended Return ?

If a taxpayer properly claimed a theft loss deduction and in a later year recovers a portion of the amounts lost, the taxpayer may Not amend the prior year’s income tax return to reduce the theft loss deduction by the amount of the recovery. Instead, the recovery is includible as tax benefit income in the year received.

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