WSJ reported yesterday that James Giddens the MF Global bankruptcy trustee wants to pay customers another 10% of their missing funds, increasing the payout from 72% to 82%. Because, the final amount missing remains open, you can't take tax losses on the lost money in 2011.
IRS issues tax guidance on MF Global missing customer funds
My Forbes blog version.
http://www.forbes.com/sites/greatsp...guidance-on-mf-global-missing-customer-funds/
As posted on the Commodity Customer Coalition(CCC) Website, the CCC requested tax guidance from the IRS on how to handle missing customer funds from MF Global for tax years 2011 and 2012.
The CCC Website shows this IRS reply letter and the IRS tax guidance matches the tax guidance we gave in our blog The MF Global Tax Trap & How to Handle 2011 Tax Extensions.
CCC sent an email update to its members on April 12, 2012 which included our Forbes blog for further tax guidance. Excerpt:
Information for Your Tax Preparer
CCC members should consult with their own legal, tax or financial advisor before filing any tax returns with the Internal Revenue Service. The following is not meant to provide any legal or financial advice but rather provide CCC members with an update from the IRS and general information concerning MF Global tax issues.
1. IRS Responds to CCC on Tax Issues
See
http://www.btrtrading.com/Legal/IRS_Response_To_CCC.pdf
2. Forbes.com article about MF Global Tax Issues
http://www.forbes.com/sites/greatspeculations/2012/04/05/caught-between-mf-global-and-the-tax-man/