Thursday December 8, 2022 – FTX is in bankruptcy. If a taxpayer has losses from their investment in FTX these “customers will face a nightmare when they file their income tax returns next year.”
Much may depend on whether Sam Bankman-Fried is charged with a crime. Because a criminal proceeding might trigger special IRS rules for Ponzi scheme investment losses, allowing for immediate deductions. Otherwise, these taxpayers might have to wait for IRS guidance or court judgments. That may take years.
Attorney Steven A. Leahy unleashes on the FTX scandal and the effect on taxpayers. on Today’s Tax Talk.
Steven A. Leahy is a tax attorney in Illinois. He was the host of the long-running popular Radio Show “The IRS Radio Hour” heard every Sunday evening on AM 560 The Answer. Attorney Leahy is also the author of the book “Deal With Your IRS Problems Today!” You can get a FREE copy of this important book at FreeIRSBook.com. Or Call 24/7 (312)664-6649