Senate Ag Leaders Seek IRS Guidance
The leadership of the Senate Ag committee, Chairwoman Debbie Stabenow and Ranking Member Pat Roberts, are urging the Internal Revenue Service to provide former MF Global customers with guidance as income tax filing deadlines are approaching. These former MF Global customers are waiting for 1099 forms detailing gains and losses to their accounts in 2011. The company filed for bankruptcy on October 31, 2011 after revealing that hundreds of millions of dollars in customer money had gone missing.
In a letter to IRS Commissioner Douglas Shulman, the pair wrote – the court-appointed trustee applied for and received two extensions 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 significant planting responsibilities in the spring and we urge your agency to respect the difficult time constraints they are under.
The letter continues – we ask that you issue guidance on the specific rules that apply in the reporting of losses from MF Global’s bankruptcy so the firm’s former customers may be able to claim a loss on their missing funds even though the full investigation of the bankruptcy is incomplete.