Murphy Secures Tax Refunds, Encourages Other Constituents to Seek Assistance

(Bristol, PA) – Today, Pennsylvania Congressman Patrick Murphy (D-8th District) joined Mike De Vita and his mother Emma De Vita to announce a refund of taxes paid on fraudulent income recorded by Bernie Madoff’s Ponzi scheme. After working with the Internal Revenue Service, they were unable to resolve their issue, so Emma and Mike approached Congressman Murphy’s office and requested assistance. His office was able to work with Taxpayer Advocate Services and the IRS in order to get the De Vitas’ return approved. As a result, the IRS was able to carry back Emma’s losses, and released to her hundreds of thousands of dollars in refunds.

Tens of thousands of taxpayers have been victimized by fraudulent investment schemes such as Madoff’s across the nation. Rep. Murphy is currently working on legislation that would allow taxpayers who have been the victim of fraud to recoup up to 15 years of tax payments paid on these fraudulent earnings, rather than the 5-year limit currently in place. Many Madoff investors paid taxes on fraudulent 1099s for decades. H.R. 1389, the Fraudulent Tax Relief Act of 2009, treats the taxes Madoff victims paid on their phantom profits over the last 15 years- money reported as taxable income but automatically reinvested into Madoff accounts, money the victims never saw- as a refundable tax credit in the taxable year in which it passes. Rep. Murphy has encouraged 8th District constituents to contact his office for assistance with other tax- and IRS-related problems.

“Across the nation, hardworking taxpayers just like Mike and Emma De Vita lost their life savings in fraudulent investment schemes like Madoff’s,” said Rep. Patrick Murphy.

“Out of everyone we contacted, Patrick Murphy was the only one who was personally responsive. He directed his staff to expend every necessary effort to address our tax issue,” said Mike De Vita. “I’d encourage other residents to contact his office for help- no one deserves to be a victim twice.”

Residents of the 8th District who have fallen victim to fraudulent investment schemes such as those run by Bernie Madoff are encouraged to contact Congressman Murphy's office at (215) 826-1963.

For Immediate Release, March 1, 2010
Contact: Kate Hansen, (202) 225-4276