November 25, 2011
TIGTA: 82% Error Rate in Investment Theft Loss DeductionsThe Treasury Inspector General for Tax Administration has released Many Investment Theft Loss Deductions Appear to Be Erroneous (2011-40-124):
Federal law ... provides taxpayers with tax relief for investment theft losses. The IRS estimates that more than 19,200 taxpayers filed Tax Year 2008 tax returns claiming a combined total of more than $8 billion in property income casualty and theft deductions. Our review identified that taxpayers may be erroneously claiming investment theft loss deductions. ... TIGTA estimates that 1,788 (82 percent) of 2,177 taxpayers may have erroneously claimed deductions totaling more than $697 million, resulting in revenue losses totaling approximately $41 million. The potential revenue loss estimate is conservative in that it only represents electronically filed tax returns for one year.
November 25, 2011 | Permalink
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What was the nature of the errors? Did a loss not occur at all? Was it a casualty loss from destruction or theft of tangible property? Any word on the problem?
Posted by: willis | Nov 26, 2011 4:49:23 PM