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Step 1: Personal Information

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Step 2: Forensic Information

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Regarding the recovery of fraudulent losses, the IRS allows taxpayers to claim theft losses as deductions on their tax returns. To qualify, the loss must be directly related to a fraudulent scheme, and the taxpayer must have relied on false representations or pretenses ¹. The IRS also provides guidance on reporting and claiming theft losses, including the use of Form 4684.

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