Tax Return Loss Investment Law Firm

When Broker Misconduct Leads To Tax Return Losses

Our Skilled Investor Loss Lawyers Work With CPAs and Investors in Pursuing Financial Recovery

Many people don’t realize that investing can impact them tax-wise. For example, if you receive income from your investments, you may have to pay an ordinary income tax rate or, in certain instances, a special tax treatment involving lower, long-term capital gains tax rates. If you made a profit from selling an investment, you will typically have to pay taxes for the money that you earned. Or, if you sustained a loss from the sale, you may be able to take a deduction depending on what assets were involved. A qualified CPA can help with such matters.

If you are an investor who has suffered losses caused by financial fraud, this could also affect how you file your tax returns. For example, you may be able to treat your investment fraud losses as capital loss, casualty loss, or theft loss. If you are a Ponzi scam victim, there may be additional tools available. Once again, a good CPA can best advise you on whether and how to include these fraud losses on your 2022 IRS tax return.

Some of these investment fraud losses, however, may also be related to the wrongful or negligent actions of a registered broker-dealer and their representative. In such instances, an investor may want to pursue financial recovery by filing a securities fraud lawsuit against that brokerage firm.

Shepherd Smith Edwards and Kantas (investorlawyers.com) represent clients who have sustained significant investment losses due to broker fraud or negligence. If you suspect that you may be the victim of broker misconduct, or if you are CPA who has a client that you believe might benefit from our help, contact us today to request your free, no-obligation case consultation.

Why Work With Our Experienced Investment Loss Recovery Lawyers

Even if a stockbroker was not directly involved in bilking an investor through a Ponzi scam or another type of financial scheme, if the financial advisor failed to conduct the proper due diligence into the investment, misrepresented the risks involved, or sold a customer a now failed financial product that was unsuitable for them, a broker-dealer negligence lawsuit for damages may be warranted.

There are also, unfortunately, rogue brokers out there who will deliberately misappropriate an investor’s money. Even if the brokerage firm wasn’t aware of the financial advisor fraud, if they failed to properly supervise this registered representative or neglected to detect and stop the theft happening, an investor may be able to pursue financial recovery from the firm.

It may even be that there was no fraud involved but that a broker unsuitably recommended an investing strategy that ended up costing the investor more in taxes and other losses than they were initially led to believe. This may be grounds for a broker misrepresentations and omissions lawsuit.

Shepherd Smith Edwards and Kantas understand that sustaining investor losses can have wide-reaching ramifications that may impact many areas of your life sometimes to devastating effect. We represent retail investors, retirees, senior investors, high-net-worth individual investors, accredited investors, and institutional investors in fighting for their financial recovery.

How Can You Contact Our Skilled Tax Return Loss Investment Law Firm?

If you are a CPA, you want your client to work with seasoned investment fraud attorneys who know how to determine whether broker negligence or misconduct played a key factor in contributing to their losses. It may even be a case of your client not even realizing that securities fraud is involved but you are noticing there are suspect losses on their tax returns.

If you are an investor, know that if we decide to work together, you will be retaining not just one attorney but our entire team of savvy securities lawyers, investor fraud assessors, legal assistants, paralegals, and consultants that have over a century’s worth of combined experience in the securities industry and securities law. Over the years, we have gone up against the largest Wall Street brokerage firms and recovered many millions of dollars for our clients.

Call the SSEK Tax Return Loss Investment Law Firm at (800) 259-9010 today so that we can help you explore your legal options.