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December 18, 2008 | 9:50 pm
Uncle Sam could lose billions in Madoff scandal
Posted by Brad A. Greenberg
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The U.S. government didn’t invest directly in Bernard L. Madoff Investment Securities. But it could take the biggest hit of all. From the AP:
Even Uncle Sam may get burned by Bernard Madoff. Investors who lost their fortunes in Madoff’s alleged Ponzi scheme will end up paying far less in taxes and may even be eligible for refunds, according to accounting experts. By some estimates, the Internal Revenue Service could be out as much as $17 billion in lost tax revenue.
“This is one more thing federal, state and local officials will have to deal with,” said John Berrie, a tax partner at the law firm Bryan Cave in New York City. “It’s another heavy box on their back.”
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