We mentioned in our last correspondence related to HR 5032 that we would be sending you information about the pending tax legislation. And we have worked very closely with Andy Lerman, without whom this legislation would not even be on the table.

As many of you know there is pending legislation in both the House (H.R. 5058) and Senate (S. 3166) intended to provide tax relief to victims of Ponzi schemes. The legislation seeks to extend the carryback period for losses resulting from Ponzi frauds. Additionally, the legislation will bring relief to victims who suffered losses in retirement accounts as well as providing relief to those who paid estate/gift taxes on Ponzi assets. There is also relief for widows and widowers who previously would not have been allowed to carryback losses related to their deceased spouse’s interest in a Ponzi scheme. Finally, an exception would be created for the 10% IRA early withdrawal penalty for certain individual who were victims of a Ponzi fraud.

It is certainly an understatement to say that Congress still has much to do before they recess again before the end of the yea, and the Congressional legislative session following the upcoming elections will be quite short. It is hard to predict the outcome of the upcoming elections and how it will impact pending legislation, but what is important to note is that the pending tax relief has significant and bipartisan support throughout Congress. There are almost 60 cosponsors of the two bills and the support crosses party lines. It is for this very reason that the next several weeks will be critical that victims of Ponzi frauds reach out to their elected officials. Victims need to stress the importance of the pending legislation and that way too much time has passed since the frauds erupted for Congress not to have responded.

Over the last few months there have been Congressional hearings at which several members of various sub-committees have vocalized the need for tax relief. Now is the time to act! As in the past, to further assist you to make your voice heard, there are TWO template letters along with instructions – CLICK HERE FOR H.R. 5058CLICK HERE FOR S.3166. Please use it as your guide. There are a number of paragraphs that are necessary, though you are encouraged to use your own language WHERE INDICATED. The letter for H.R. 5058 should be sent to your local representative in the House. In addition, a copy of the HR 5058 letter should be sent to the Chairman of the House Ways and Means Committee, Rep. Sandy Levin as well as the lead sponsor for the bill Rep. Bill Pascrell. The letter for S. 3166 should be sent to your state’s Senators. Additionally, a copy of the letter for S.3166 should be sent to the Chairman of the Senate Finance Committee, Sen. Max Baucus as well as the lead sponsor for the bill Sen. Charles Schumer. Lastly, please fax or email a copy to NIAP for its lobby firm, who will use those copies as they meet with Congressional members. Again, the complete instructions can be found by clicking H.R. 5058 and S.3166 accordingly.

After the elections, people will be asked to follow up with phone calls to their elected officials. Additionally, if you have a close connection with a Congressman or Senator, please do not hesitate to contact them directly now.

We have reached a moment in this process where the collective voices of all victims need to heard so that a difference can be made. This is not the kind of issue where political ideology can create gridlock. Please take the time to speak out and reach out to Congress.

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