New Tool Aims to Help Fraud Victims Claim Tax Relief

A new calculator may help scam victims organize documentation to potentially claim theft loss deductions.

Updated on Sept. 30, 2026 in Taxes

Isometric editorial illustration showing organized file folders and a storage box on a desk, representing tax documentation assembly. — Lionsgate Intelligence Network launched a new tool to help fraud victims aggregate evidence for potential Section 165 tax theft-loss deductions. AI Illustration. Upload story photo >

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Lionsgate Intelligence Network released a free Section 165 calculator to assist victims of crypto scams and wire fraud in organizing evidence. The tool helps taxpayers prepare documentation for CPAs to evaluate potential deductions under Section 165 of the Internal Revenue Code.

Why it matters

Following a year where consumers lost over $1 trillion to scams, this service aims to streamline the complex process of substantiating theft-loss claims. Proper documentation is essential for tax professionals to determine if these losses qualify for tax relief via Form 4684.

Consumers lost more than $1 trillion to scams in 2024, a total market loss that drives the need for rigorous evidence collection. The service helps organize financial records for tax professionals to assess potential theft-loss deductions allowed under IRS guidelines.

The players

Lionsgate Intelligence Network

A private entity that provides analytical services and tools for documenting financial fraud.

Internal Revenue Service

The federal agency responsible for tax administration and interpreting the Internal Revenue Code.

The details

The service functions as an evidence-gathering platform that prompts users to input data regarding their scam experiences, lost assets, and previous recovery attempts. It then compiles these details, including transaction histories and account records, into a format designed for review by tax professionals. By organizing this evidence, it helps CPAs determine whether specific losses meet the requirements for a deduction under Section 165 of the Internal Revenue Code.

March 14, 2025: IRS Chief Counsel Memorandum 202511015 was released.
October 15: Deadline for taxpayers on extension to report theft loss on Form 4684.

Money Landscape

The introduction of this tool aligns with the regulatory framework established by IRS Chief Counsel Memorandum 202511015. It reflects a growing focus on the intersection of widespread digital fraud and formal tax-filing compliance.

If you were a victim of a scam, consult with a tax professional to see if your losses qualify for a deduction on Form 4684. Ensure you gather all transaction histories and forensic records before the October 15 filing deadline for those on extension.

The takeaway

The primary challenge for scam victims remains the ability to produce verifiable evidence for tax authorities. If you have significant losses, work with a qualified tax professional to review your documents and verify eligibility for theft-loss deductions before the annual filing deadline.