will be using Rev. Procedure 2009-20 for client to claim 95% of loss as theft (rather than capital loss). The only copy of "Appendix A", which is a required attachment, that I can find is from the IRS Revenue Bulletin of April 6, 2009. I created one but was wondering if there was a usable form available?
Well, I'm going with the form I created. The 4684 looks quite bizarre, but the instructions specifically say not to fill any other sections out. Also interesting with this procedure is that the perp only has to be arrested, you don't have to wait for a conviction.
The answer is "IT DEPENDS". And it depends on what client bought in the Ponzi scheme. If this is a Madfff client, Congress may have created special rules for them. Otherwise it depends on whether the purchased an interest in an investment (capital loss) or loaned funds to a company (bad debt).
Dick
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