Many victims like Bert Ross paid taxes on those fictitious earnings. Ross says he lost $5 million to Madoff, plus another $375,000 in taxes.
Madoff Victims Want Answers, Not Apologies - CBS News
So if there were no earnings, is it right for the government to keep Ross's and others taxes?
but there WERE earnings. they declared them themselves
now, they will be able to offset the losses against earnings ... and in the likely instance losses exceeded earnings, they will now be able to restate the prior years taxes and do income averaging to mitigate their tax exposure
The Earnings were "ficticious".
no they were not ... unless they want to tell the IRS that they filed a ficticious tax return
you earned your salary this month, and pay taxes on it
someone then steals that sum from you. should the government return the taxes you paid on your salary?
sorry, this won't flush
Yes....and no.So if there were no earnings, is it right for the government to keep Ross's and others taxes?
Yes....and no.
The government is not the malefactor in this. Earnings were reported, and on the basis of those earnings, taxes were assessed and paid. As much as it pains me to defend the Income Reduction Service, there is no indication they have done anything that merits extraordinary relief.
HOWEVER
As has been stated, the earnings were fictitious, and thus the information underlying the tax assessments was in error. For all such years, Madoff's clients need to--and need to be able to--file amended tax returns (form 1040X) to restate and recover the tax overpayments.
Given the depth and breadth of Madoff's fraud, as well as its extraordinary duration, it would not be at all inappropriate to grant a "Madoff" exception to the usual three-year time window for amending returns. If the Department of the Treasury and the IRS can grant that exception within the scope of existing regulations, they should; otherwise, Congress should pass such an exception. It should not be difficult to craft such an exception to narrowly fit the unusual circumstances of Madoff's clientele.
By the way, what does this have to do with Obama? Any decision on this will probably be made at a (much) lower level.
Actually, that may not be the case. If the IRS regs do not give them sufficient leeway to accommodate Madoff's victims on their own, Congressional action or Executive Order would be the vehicle for obtaining justice. Either way, the Oval Office would have involvement at that point.
That is basically what I was thinking when I first read it. My dad had to correct an old tax return, so knew it could be done. Hopefully the people who got ripped off can at least get the taxes back, it would at least help them a bit. Would the charities that lost money just be screwed, not having paid taxes? That thought makes me sad.
By the way, what does this have to do with Obama? Any decision on this will probably be made at a (much) lower level.
The buck stops with Obama, Obama was all about who was getting bailouts, and who are ceo's of companies, I just thought..........
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