Frost Law
A recent IRS legal memorandum (ILM 202511015) has clarified the ability of some scam victims to claim theft loss deductions, despite limitations imposed by the Tax Cuts and Jobs Act on personal losses. Counsel Eric Lanning, Esq. expressed his approval of the IRS's analysis, noting it aligns with the position he has advocated for clients, particularly those affected by "pig butchering" scams. You can learn more from Eric in the video here or click the link on the left hand side of the screen.
Managing Partner Glen Frost, Esq., CPA, concurred with this sentiment, adding that the guidance provides valuable clarity for tax professionals and affected taxpayers navigating these complex situations. The memo distinguishes between scams involving investment motives, which may qualify for deductions, and those rooted in personal relationships, which are generally not deductible under the current limitations. This IRS guidance offers a more defined framework for understanding theft loss deductions in the context of prevalent scam activities. Read the full Tax Notes article for Eric's full quote and other tax professionals' statements.
A recent IRS legal memorandum (ILM 202511015) has clarified the ability of some scam victims to claim theft loss deductions, despite limitations imposed by the Tax Cuts and Jobs Act on personal losses. Counsel Eric Lanning, Esq. expressed his approval of the IRS's analysis, noting it aligns with the position he has advocated for clients, particularly those affected by "pig butchering" scams. You can learn more from Eric in the video here or click the link on the left hand side of the screen.
Managing Partner Glen Frost, Esq., CPA, concurred with this sentiment, adding that the guidance provides valuable clarity for tax professionals and affected taxpayers navigating these complex situations. The memo distinguishes between scams involving investment motives, which may qualify for deductions, and those rooted in personal relationships, which are generally not deductible under the current limitations. This IRS guidance offers a more defined framework for understanding theft loss deductions in the context of prevalent scam activities. Read the full Tax Notes article for Eric's full quote and other tax professionals' statements.
