Pages

Subscribe:

Wednesday 23 November 2011

IRS to Refund $326 Million Transferred to Madoff’s Firm

An agreement has been reached between the U.S. Internal Revenue Service and the trustee who is fighting for the victims of Bernard Madoff whereby IRS will refund $326 million that was earlier transferred to it by Madoff’s firm supposedly on behalf of foreign account holders.

According to the court filing, Madoff’s customers who have valid claims will get the settlement money. Certain payments made by Madoff and his firm had been identified by the trustee, Irving Picard during the course of his investigation. Picard said in the court filing that payments totaling about $330 million had been made on behalf of 145 foreign account holders. The court filing states that about $4.2 million had been erroneously refunded to two of the foreign account holders by the IRS.

Picard said in a filing that “I believe that the payments made to the IRS falsely identified the funds as income tax withholding in order to give the investment advisory arm of Bernard L. Madoff Investment Securities LLC (BLMIS) an air of legitimacy and to avoid inquiries.” He further said that there was no record of any purchase or sale of any securities being made by Madoff’s firm for the benefit of foreign account holders.

About $103 million of the settlement payment will be reserved by the trustee to meet any judgments against the IRS or the trustee. 

Read More On : IRS to Refund $326 Million Transferred to Madoff’s Firm

No comments:

Post a Comment