Category: IRC 165

Wire fraud and Business Email Compromise (BEC) are among the most costly financial crimes affecting both individuals and businesses in the United States. According to the FBI, BEC alone costs American businesses and individuals billions of dollars annually. If you or your company has suffered a wire fraud loss, you may be entitled to a… Read more

One of the first questions scam victims ask is: “How much can I actually deduct?” The answer depends on several factors, but for many victims the deduction is substantial — and it can produce a real reduction in federal income taxes owed, or even a refund of taxes already paid. Here is how the calculation… Read more

One of the most widespread misunderstandings in tax practice today is the belief that the Tax Cuts and Jobs Act of 2017 eliminated all theft loss deductions for individuals. Many CPAs and tax preparers tell clients this — and they are only partially correct. The TCJA significantly restricted one type of theft deduction, but it… Read more

Financial fraud targeting older adults is one of the fastest-growing crimes in the United States. Each year, billions of dollars are stolen from seniors through sophisticated scams that exploit trust, loneliness, cognitive vulnerability, and unfamiliarity with technology. If you or a loved one has been victimized by elder fraud, you should know that federal tax… Read more

If you suffered a financial loss from a scam in a prior tax year and did not claim a deduction, you still have options. Filing an amended tax return using Form 1040-X is often the path scam victims use to claim an IRC Section 165 deduction after the fact. Here is a clear explanation of… Read more

Pig butchering scams have become one of the most prevalent and financially devastating forms of fraud in the world. If you have been victimized by one of these schemes, you may be living with a combination of financial loss and emotional distress. What many victims do not realize is that pig butchering losses often represent… Read more

If you lost money in a Ponzi scheme, you are facing a painful financial reality — but there is meaningful tax relief available under IRC Section 165. The IRS has established clear guidance specifically for Ponzi scheme victims, including a special safe harbor that simplifies the process of claiming your loss. Here is what you… Read more

Romance scams are among the most devastating forms of financial fraud. Victims not only lose money — often life savings — but also suffer profound emotional harm from a relationship they believed was real. What many victims do not know is that depending on how the scam unfolded, they may qualify for a federal tax… Read more

If you have been the victim of investment fraud, you may be entitled to a significant federal tax deduction — even after the Tax Cuts and Jobs Act of 2017. IRC Section 165 is the legal foundation that allows scam victims to deduct financial losses on their federal tax return, and understanding how it works… Read more

If you lost money to a cryptocurrency scam, you may be wondering whether the IRS will give you any relief. The good news is that many crypto scam losses qualify for a federal tax deduction under IRC Section 165(c)(2) — and the 2017 Tax Cuts and Jobs Act did not eliminate this avenue for investment… Read more