The Internal Revenue Service is allowing tax relief and refunds for some investors who paid taxes on earnings from their investments with Bernard Madoff that turned out to be nonexistent.
IRS Commissioner Douglas Shulman is telling Congress Tuesday that the agency is issuing guidelines for taxpayers who are victims of losses from Ponzi investment schemes such as the massive Madoff swindle.
Madoff investors should have been reporting earnings from their investments with him through the years and thus paid taxes on those earnings.