Revenue Procedure 2011-58 modifies Rev. Proc. 2009-20, 2009-1 C.B. 749, which provides an optional safe harbor allowing certain investors to claim a theft loss deduction for qualified losses from specified fraudulent investment arrangements for which authorities have charged the lead figure by indictment, information, or criminal complaint with a crime that meets the definition of theft for purposes of § 165. Rev. Proc. 2011-58 addresses certain situations in which the death of a lead figure has foreclosed the possibility of criminal charges. The rev. proc. extends the safe harbor in that event to certain cases in which a lead figure or associated entity is the subject of a state or federal government civil complaint alleging the elements of a specified fraudulent arrangement.
Revenue Procedure 2011-58 will appear in IRB 2011-50 dated Dec. 12, 2011.