Shulman Rogers Secures $200,000 IRS Refund for Cryptocurrency Fraud Victim
Shulman Rogers Secures $200,000 IRS Refund for Cryptocurrency Fraud Victim
Shulman Rogers is pleased to share a successful outcome for a client who suffered devastating losses as a victim of a “pig butchering” cryptocurrency fraud scheme.
The client lost more than $5 million after being targeted by an elaborate online scam in which fraudsters developed a relationship over several months, eventually convincing her to make increasingly large investments through what appeared to be a cryptocurrency trading platform. Once the scheme concluded, the perpetrators vanished. Because these criminal enterprises typically operate overseas, U.S. law enforcement had no avenue to pursue them.
Working closely with her client, Nancy Kuhn identified a path forward through the tax code. She amended the client’s prior tax returns to claim a theft loss of $5.8 million and established a net operating loss that can be applied to offset income in future and prior years. The IRS approved the claim without challenge, relying on Nancy’s legal memorandum, and issued a refund of approximately $200,000. The ruling also eliminated tax liability on more than $3 million in IRA distributions and capital gains, and the loss will continue to shelter the client’s taxable income going forward.
“I want to thank you for your support and let you know how much I appreciate your knowledge in providing legal services for my case,” said the client.
Nancy’s work turned a situation with no clear legal remedy into a meaningful financial recovery for her client.
Shulman Rogers’ Tax practice advises individuals and businesses on a wide range of tax planning and compliance matters, including complex situations involving losses, amended returns, and IRS proceedings. Our attorneys work to identify every available option and advocate on behalf of clients to achieve the best possible outcome.
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