As Madoff investors go John and Cathy Dalton might count themselves lucky. They invested $655,500 in 2000 and $40,000 in January 2003. Between 2002 and 2008 they made 47 withdrawals totalling $572,900. In May 2009 they received $122,600 funded by the SIPC. Being even in the last decade was actually pretty good performance. Still there were tax issues. Every year they received detailed statements showing the gains and loss and interest and dividends from the fictitious investments that Mr. Madoff was pretending to make for them. They dutifully reported these amounts on their federal and state tax returns and paid the appropriate taxes. Read Forbes report here.
