How to Deduct on Taxes If I'm Frauded
- 1). File a police report. This could be an important element in documenting your deduction, if the IRS challenges it.
- 2). File an insurance claim if you own any policies that will cover your loss. Few policies cover fraud, but many renter, homeowner and auto policies cover theft.
- 3). Download a copy of IRS Form 4684 - Casualties and Thefts from the link in Resources.
- 4). Figure your loss in Section B of IRS Form 4684. You deduct fraud losses in the same manner as theft losses.
- 5). Fill out Appendix A of Internal Revenue Bulletin 2009-14, which you can download from the link in Resources, and write "Revenue Procedure 2009-20" across the top of IRS Form 4684.
- 6). Return Form 4684, along with any supporting documentation with your tax return to the IRS.
Source...