About the Course
Introduction
This webinar will examine guidance on the deductibility of tax losses from scams. Our panel of tax specialists will distinguish theft losses, personal casualty losses, and Ponzi schemes, and will outline the reporting requirements for each type of loss on individual income tax returns.
Description
The proliferation of scams generating significant losses for taxpayers creates a need to recoup some of these losses through tax deductions. The rules concerning deductibility of these losses, however, are continually evolving.
The TCJA (Tax Cuts and Jobs Act) eliminated the personal casualty loss deduction for individual income taxpayers, except for losses in federally declared disaster areas. The Act impacts losses in the years 2018-2025.
Recently, the IRS issued Chief Counsel Memo (CCM) 202511015 clarifying the criteria for certain theft losses under IRC Section 165 and states:
"We are aware that taxpayers have suffered losses from various scams perpetrated by unknown individuals operating domestically and internationally. This memorandum addresses several common scenarios; however, the actual scam may vary, and the application of this advice is dependent on the taxpayer's specific facts."
The CCM references the requirements under IRC Section 165 for deductible theft losses, including that the loss must be related to a trade or business or, if not, incurred in a transaction entered into for profit. Determining whether a transaction was entered into for profit and whether the loss is a theft loss or a personal casualty loss can be challenging.
Listen as our panel of federal income tax professionals reviews common types of scams and whether these may or may not be tax deductible.
Presented By
Mr. Foreman co-chairs FRB’s Taxation Practice Group and advises businesses on the tax effects of a variety of corporate transactions, including taxable and tax-free reorganizations, mergers, sales, and acquisitions. He designs and implements tax-efficient structures for U.S.-based businesses to expand abroad and invest in foreign joint ventures. Mr. Foreman drafts tax memoranda and opinions on a variety of subjects, including tax-free reorganizations, tax-efficient return of capital to owners, Qualified Small Business stock, and various state pass-through entity taxes. He defends clients from audits from the IRS and various state tax agencies, including appealing audit determinations. Mr. Foreman advises clients on a variety of tax issues related to cryptocurrencies, including initial coin offerings (ICOs), taxability of staking and air drops, and the imposition of Sales and Use taxes on the issuance of non-fungible tokens (NFTs). He drafts tax portions of Operating and Shareholder Agreements for businesses in different industries. Mr. Foreman has extensive experience in a variety of SALT issues, especially New York State residency audits and state Sales and Use tax nexus issues post-Wayfair.
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BARBRI is a NASBA CPE sponsor and this 110-minute webinar is accredited for 2.0 CPE credits.
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BARBRI is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).
Date + Time
- event
Wednesday, February 25, 2026
- schedule
1:00 p.m. ET./10:00 a.m. PT
I. Scam losses: introduction
II. TCJA
III. Theft losses
IV. Personal casualty losses
V. Ponzi losses
VI. Substantiating the deduction
VII. Best practices
The panel will cover these and other critical issues:
- Clarifications on deductibility made by CCM 202511015
- The impact of TCJA on deducting losses from scams
- Reporting and substantiating losses incurred from scams
- Distinguishing personal casualty losses from theft losses
Learning Objectives
After completing this course, you will be able to:
- Identify Ponzi schemes
- Determine types of scam transactions
- Decide if scam losses are considered personal casualty losses
- Ascertain key differences between theft losses and casualty losses
- Field of Study: Taxes
- Level of Knowledge: Intermediate
- Advance Preparation: None
- Teaching Method: Seminar/Lecture
- Delivery Method: Group-Internet (via computer)
- Attendance Monitoring Method: Attendance is monitored electronically via a participant's PIN and through a series of attendance verification prompts displayed throughout the program
- Prerequisite:
Three years+ business or public firm experience preparing complex tax forms and schedules, supervising other preparers or accountants. Specific knowledge and understanding of individual income taxation, including itemized deductions, individual income tax credits, net operating loss limitations including carrybacks and carryforwards.
BARBRI, Inc. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of Accountancy have final authority on the acceptance of individual courses for CPE Credits. Complaints regarding registered sponsons may be submitted to NASBA through its website: www.nasbaregistry.org.
BARBRI is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).
BARBRI CE webinars-powered by Barbri-are backed by our 100% unconditional money-back guarantee: If you are not satisfied with any of our products, simply let us know and get a full refund. Contact us at 1-800-926-7926 .
