Bigger Tax Break for Madoff Victims Under Proposed New Law
Those who suffered extensive longtime losses under Bernard Madoff’s alleged $50 billion Ponzi scheme aren’t likely to see most of their money again, at least anytime soon.
But new federal legislation proposed today would at least give them some tax relief, reports Bloomberg. Those who paid income tax on fictitious profits could recoup the overpayment for the past 13 years under a bill introduced by U.S. Rep. Gary Ackerman (D-N.Y.).
Current tax rules permit taxpayers to go back only three years when seeking such a refund.
As discussed yesterday in an ABAJournal.com post, Madoff is expected to plead guilty tomorrow in an 11-count federal criminal case concerning the alleged fraud.
Additional coverage:
Investment News: “Advisers: Recovering taxes for Madoff victims is tough “
Investment News: “IRS must help Madoff victims, says Rep. Ackerman”
