How is this for a story? Client is scammed out of $120,000 of retirement. The retirement is considered taxable income. A return is filed and the client owes $30,000 of taxes. Talk about adding insult to injury.
This is an actual IRS Audit Case. Our strategy to fix the taxes was to claim a theft loss deduction to offset the tax balance. We did this by filing an amended return.
Eventually, the amended return was selected for IRS Tax Audit. There were some issues on claiming the theft loss deduction. After thoroughly researching the tax law, found a solutions. The IRS Auditor agreed with our position and accepted the amended return as filed. The client’s taxes were reduced from $30,000 to less than $1,000.
Click Here to learn more about how the client was scammed out of $120,000 and how we resolved the IRS Audit Case.