NJ Couple Gets Refund on Taxes Paid on Madoff Cash

Couple who paid state taxes on Madoff's "phantom income" gets their money back.

A New Jersey couple bilked by swindler Bernie Madoff is getting a refund on state taxes they paid on phony profits from the Ponzi scheme.

A state tax court ruled there is no legal reason John and Cathy Dalton should be forced to pay taxes on what the judge termed “phantom income.”

Tuesday's ruling overturned a decision from the New Jersey Division of Taxation that the profits deserved to be taxed because they were available to the Monmouth County couple at the time.

The court ruling allows the couple to get back $5,000 in taxes they paid on the earnings, which later proved to be bogus.

The Star-Ledger of Newark reports the couple invested nearly $700,000 with Bernard L. Madoff Investment Securities, but eventually got their money back.


Copyright AP - Associated Press
Contact Us