<<Mar 2024>>
MTWTFSS
26 27 28 29 1 2 3
4 5 6 7 8 9 10
11 12 13 14 15 16 17
18 19 20 21 22 23 24
25 26 27 28 29 30 31

IMPORTANT UPDATE ON TAX LEGISLATION -

TIME TO GIVE CONGRESS A PUSH!

Dear Friends:

If we’re going to get tax legislation passed this year – which is a real possibility — we need a big final push from all of you. Below is an urgent letter from friend and CPA Andrew Lerman, who has worked so hard on everyone’s behalf of tax legislative change.

– Ron Stein

To All –

As we approach the end of 2010 it brings along with it another anniversary of the Madoff fraud. It has been almost two years since the fraud unraveled. It has also been almost two years that Congress has struggled with how to handle the damage left in the wake of the fraud.

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.

Now that the elections are past, the Congressional legislative session will be quite short – essentially from late November to mid-December. It is certainly an understatement to say that Congress still has much to do before they recess again before the end of the year, and it remains unclear how the changes in Congress might impact this legislation. What is important to note is that the pending tax relief for Ponzi victims has significant and bipartisan support throughout Congress – there are almost 60 cosponsors of the two bills with support from both parties. On the other hand, Congress will be wrestling to produce necessary income and estate tax legislation, and it is to these bigger bills that this legislation will likely be attached, if Congress sees the urgency.

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.

Now is the time to act! 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. To help assist you to make your voice heard, there are TWO template letters along with instructions – CLICK HERE FOR HR5058 - CLICK HERE FOR S3166. 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 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. Some of you who have been victimized may have already received some tax benefits. I encourage you to still write to Congress to allow those who are less fortunate to get the necessary tax relief. For those of you who are not victims of a Ponzi fraud I ask that you also write to Congress supporting the proposed legislation.

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. The government should not be allowed to be the biggest beneficiary of these frauds. We have numerous volunteers urging investors to step up, even those who have already received their maximum potential tax benefit.

Please take the time to speak out and reach out to Congress. And if you have any spare time to make a few calls to help others do that same, please let us know. We’d love your help.

For more information, please contact by email: admin@investoraction.org, or call DJ or Ilene at 631 425-0770.

Thank you,

Andrew N. Lerman, CPA

Share This Page:
  • email
  • Facebook
  • Twitter
  • LinkedIn