Are Crypto, Romance, or Pig Butchering Scams Tax Deductible Under IRC 165?
In March 2025, the IRS Office of Chief Counsel issued important guidance addressing whether victims of modern financial scams may deduct their losses under Internal Revenue Code Section 165. The memorandum analyzes a range of increasingly common fraud schemes, including cryptocurrency investment scams, phishing attacks, impersonation schemes, romance fraud, and grandparent scams. For individuals who […]