More than 60 angry Californians vented their spleens at state lawmakers last night. Their demand: Tax relief to offset their losses in Bernie Madoff’s Ponzi scheme.
According to the LA Times, the group “gave state senators an earful at a hearing held by the state Senate’s Select Committee on Investment Malfeasance to explore possible state tax remedies.”
While several of Madoff’s La-La Land victims are high profile Hollywood types, the state has also seen a fair amount of senior citizens in the mix, too.
The problem is that while the IRS is letting theft losses from Ponzi schemes be counted against income from the past five years or the next 20 years, there’s no state law in California that allow people to recover taxes paid on phantom income, and the state doesn’t allow victims to claim their losses as a theft loss, the Times said.