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Senate Letter to IRS - Tax Guidance for MF Global Customers

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Written by
NIBA
Published
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2 min

The Honorable Douglas H. Shulman
Commissioner of Internal Revenue
Internal Revenue Service
1111 Constitution Avenue, NW
Washington, DC 20224

February 27, 2012

Dear Commissioner Shulman

We are writing on behalf of the former customers of MF Global, Inc, On October 3 1,20 II , the firm filed for bankruptcy after revealing that hundreds of millions of dollars in customer money had gone missing, With tax deadlines fa st approaching, and with so much uncertainty still remaining over the fate of that money, we ask your agency to issue immediate guidance to MF Global's customers and to be flexibl e with those customers who may need to file their taxes with incomplete information.

Former MF Global customers are still waiting for 1099 forms detailing gains and losses to their accounts in 20 I I . The court-appointed trustee applied for and received two ex tensions from your agency, but the former customers of MF Global must still pay their taxes on time, Many of these customers are farmers and ranchers who have signifi cant planting responsibilities in the spring and we urge your agency to respect the difficult time constraints they are under.

Investigators are still working to untangle MF Global's records, and former customers are faced with the possibility of having to use estimated or inaccurate in fo rmation that may require them to file additional amended or supplemental tax filings - an unacceptable level of add itional red tape and paperwork for the customers who are already suffe ring hardships because their money went missing, We ask that yo u issue guidance on the specific rules that apply in the reporting of losses from MF Global 's bankruptcy so that the firm 's former customers may be able to claim a loss on their miss ing funds even though the full investi gation of the bankruptcy is incomplete, In requesting this guidance, it is our hope that you will work hard to ensure that filing tax returns does not become yet another undue burden for MF Global's former customers.

Sincerely,
Debbie Stabenow
Chairwoman

Pat Roberts
Ranking Member

» View Letter as PDF

The Opinions expressed are the opinions of the author. The opinions, the trading styles, trading information and trading programs are not endorsed by the NIBA, but are the individual opinions, styles, information and programs of the author.

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