The mission of Isaacson Law Firm, PLLC is to assist you, the taxpayer, through a process we have developed through litigation against tax shelter promoters, promoters of Ponzi schemes or fraudulent investment schemes, banks, and brokerage houses.

Our philosophy is you should not spend good money on a case for which you have a low probability of winning. Isaacson Law Firm does not charge for your initial case evaluation.

The United States Internal Revenue Code allows an ordinary loss deduction to the taxpayer who has invested in a Ponzi scheme, or other fraudulent investment scheme, to be recouped through an amended IRS 1040X tax return. Oftentimes the challenge is (1) to prove through a written opinion that the investment scheme was a Ponzi scheme or that the investor was induced to invest because of swindling, false pretenses, embezzlement, or deceit, and (2) to prove through a written opinion that there is no reasonable prospect of recovery or that the taxpayer qualifies under the safe harbor under Rev. Proc. 2009-20.

Step 1: Prove the existence of fraud, swindling, theft, embezzlement, or deceit. Determine whether the scheme promoter induced you, the taxpayer, to depart with your property by swindling, false pretenses, embezzlement, or deceit.

  a. Identify false statements or material omissions made by promoters.

  b. Establish investor reliance on these statements.

  c. Establish the transfer of money and/or property to the promoter.

Step 2: Determine whether evidence exists that a scheme promoter acted with intent to deceive.

Step 3: Determine the amount of the theft loss or fraud loss from the investment scheme.

Step 4: Determine whether the investor has a reasonable prospect of recovery.

Step 5: Determine whether the investor qualifies under Rev. Proc. 2009-20 and determine whether a criminal complaint should be filed against the promoter.

Step 6: Prepare a Tax Opinion Letter compliant with Treasury Department Circular 230.

After we evaluate information gathered with each step of the process, our due diligence is complete. We then prepare our tax opinion letter confident that if the IRS does not issue a tax refund within six months, we are prepared to contact the Taxpayer Advocate Service or file a refund claim in the United States District Court or the United States Court of Federal Claims. We cannot guarantee a particular outcome, but we do commit that when we form the opinion that you were convinced to part with your property by swindling, false pretenses, embezzlement, or deceit, we will be prepared to litigate your claims in the event the IRS does not act on your refund claim within six months of your filing an amended tax return.