In joint letter to the Internal Revenue Service (IRS), Sen. Debbie Stabenow (D, MI), chair of the Senate Agriculture Committee, and Sen. Pat Roberts (R, KS), ranking member, called on the IRS to provide help and flexibility to the clients of bankrupt MF Global, specifically asking the agency to spell out “the specific rules that apply in the reporting of losses…so the firm’s former customers may be able to claim a loss on their missing funds…”
The Senate ag leaders said many farmers and ranchers are still waiting for IRS Form 1099s, detailing their gains and/or losses with MFG. With no final accounting, Stabenow and Roberts said, “customers are faced with the possibility of having to use estimated or inaccurate information that may require them to file additional amended or supplemental tax filings – an unacceptable level of additional red tape and paperwork for the customers who are already suffering hardships because their money went missing.
MFG trustees now estimate the amount of missing funds in the MFG bankruptcy tops $1.6 billion, up from $1.2 billion estimated in 2011. The trustees have paid out the equivalent of 72% on average of customer assets, but there’s no guarantee customers will be repaid in full.