I lost a substantial amount of money in a foreign Bank in Kenya. The shareholders and the MD stole billions of shillings. My CPA researched and confirmed that the loss would be deductible. The IRS declines claiming that the loss in a foreign Bank outside USA is not deductible. Yet, the income I earned in the last 5+ years, I paid substantial amount of taxes in the USA. I want to know that do I have a case with the IRS. They have sited IRC 165(l) as the reason for decline. In my assessment, there is nothing stated about a Bank that is outside the jurisdiction of the FRB in the USA. I am a US Citizen but presently living in Kenya. My CPA is in Seattle, WA.
I recommend you call a tax attorney right away.
I am not your attorney and am not giving legal advice.
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