Information on Tax Issues, Including Schedule K-1 and Form 8082
Receivership advisors are investigating whether the Wextrust Entities complied with applicable tax requirements.
This process is a complex one and is not completed yet. There are two issues that investors should consider carefully
at this time.
First, the receivership has received a number of inquiries from investors about whether the Receiver will be issuing
Schedule K-1s for the 2007 or 2008 tax years. The Receiver will not be in a position to file tax returns or send Schedule
K-1s to investors for the foreseeable future.
Second, the Receiver cannot vouch for the accuracy of K-1s that were sent to investors before the Receiver was appointed.
It is possible that such K-1s were inaccurate and that inaccuracies may have caused investors to pay more taxes than they
should have in previous years. As a result, it is imperative that investors consult with their professional tax advisors
immediately to determine an appropriate course of action to take in light of these two issues, including the potential filing
of a Form 8082 (click here) and protective claims for refund to avoid expiration of the statute
of limitations for potential refund of any potential overpayments.
On March 17, 2009, the IRS issued a new revenue ruling and revenue procedure for taxpayers who are victims of
losses from Ponzi-type investment schemes. Both the ruling and the revenue procedure can be found
here.
The foregoing is intended to provide useful information to investors who have inquired about various tax-related issues.
Neither the Receiver nor receivership counsel or advisors can provide tax advice to investors, and nothing on this website or
any materials provided to investors by the receivership may be relied upon as tax advice. Pursuant to U.S. Treasury Department
Circular 230, unless we expressly state otherwise, any tax advice contained in this communication (including any attachments) was not intended or written to be used, and cannot be used, for the purpose of (i) avoiding tax-related penalties or (ii) promoting, marketing or recommending to another party any matter(s) addressed herein.
The Receiver will continue to provide information on tax-related issues on a periodic basis. Suggestions from investors
about what information would be most useful to them are welcome, and the Receiver appreciates investors’ continued patience
and support.