Replies to post #337943 on Spongetech Delivery Systems, Inc. (fka SPNGQ)

[dalessan]

I called the IRS...they instructed me to use Revenue Procedure 2009-20, which involves claiming casualty/theft loss as a result of a Ponsi scheme type investment, which this qualifies for.
You need to fill out the Appendix A worksheet on page 13 of the Revenue Procedure 2009-20 document.
Then fill out Form 4684, page 2 Section B.

This loss must be claimed in the year that the criminal indictments are handed down or confessions are made, which was for tax year 2010 in my estimation, so I had to file amended Federal and State tax returns.