These losses are deductible as theft losses of income-producing property on your tax return for the year the loss was discovered. You figure the deductible loss in Section B of Form 4684. However, if you qualify to use Revenue Procedure 2009-20 (as modified by Revenue Procedure 2011-58) and you choose to follow the procedures in the guidance, complete Section C of Form 4684 before completing Section B. Section C of Form 4684 replaces Appendix A in Revenue Procedure 2009-20. You do not need to complete Appendix A. See the Form 4684 instructions and Publication 547, Casualties, Disasters, and Thefts, for more information.

Help for Victims of Ponzi Investment Schemes

Reporting Losses Resulting from Ponzi Schemes