Ponzi or no Ponzi? That is the Question...

According to an AP story running this morning, it seems that, the IRS is giving people a break who invested in Madoff and other known Ponzi schemes.

IRS Commissioner Douglas Shulman told Congress the new guidelines are for taxpayers who have suffered losses from Ponzi investment schemes such as the massive Madoff swindle.

He said the guidelines will apply to victims of all Ponzi schemes — financial scams in which early investors are paid returns from money put in by later investors. But given the scope of the Madoff scandal, the IRS wanted to establish an easy system for investors to recover taxes they paid on "fictitious income," Shulman said.

You know, when you think about it, anyone who invests in the stock market, based on what we have been seeing this past decade or so, should fall within this parameter. Enron, WorldCom, Tyco, and so many others that have pumped their stock to gain investors money in a fictitious manner. For those that cashed out on the rise of the stock are those who have made money in the scheme. However, there are many that stuck with the firm and ended up losing everything, and I'm finding it difficult to tell the difference any more of a stock market or a Ponzi scheme.

Let's see, this would also mean that we should all be able to deduct our expenses that are taxed us for the country's social security program. That is the largest Ponzi scheme ever concocted. Or what about our Medicaid or Medicare, these too are also failed Ponzi schemes that are in need or revamping their systems.

Based on these new IRS rules, there could be some money coming to all of us here real soon.




This, the 266th entry in bloggoland! Thanks for reading and coming back. I always enjoy the comments, emails and the banter!!


(c)Copyright 2009 Doug Boggs