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While DDG handles the investigations, V2V Advisors LLC (V2V) handles the tax filings. Led by Jane McMullen, with 25 years of tax experience, V2V specializes in navigating the most complex corners of the tax code—from international expat compliance to forensic theft loss.
Whether you are a victim needing a rescue or a family needing a reliable annual tax filing, V2V provides the personalized strategy that software can't match.
Safe: We treat your data with military-grade security.
Precise: We don't just "plug numbers." We analyze them.
Proven: Trusted by investigators and high-net-worth clients.
The IRS does not simply take your word that you were scammed. To claim a massive Theft Loss Deduction, you must survive rigorous IRS scrutiny.
A standard CPA will simply attach a police report and submit the form. This is why so many claims are permanently disallowed. A theft loss deduction is not a math equation; it is a legal finding of fraud.
DDG’s in-house tax vertical, operating with our Social Enterprise partner V2V Advisors, builds a forensic analysis for your file. We analyze the mechanics of your scam, reconstruct your bank wires, map the blockchain architecture of the scam, and establish the exact "Origin of the Claim" to ensure your deduction is legally defensible before the IRS ever sees it.
Q: Can I claim a tax deduction for crypto, bank wire, or ACH scam losses?
A: You may be able to deduct the entire amount of your lost principal against your ordinary income. The IRS looks at the nature of the fraud, not the payment method, but qualifying requires meeting a strict "criminal intent" standard that most standard filings miss.
Q: I liquidated my 401(k)/IRA to pay the scammers. Can you help with the penalties?
A: We may be able to help, depending on the specific facts of your case. Standard tax preparers routinely accept defeat in these situations, simply forcing you to pay the 10% early withdrawal penalty to the IRS.
Q: Can I use TurboTax or my local CPA to file this?
A: We strongly advise against using DIY software or relying on standard accountants for theft loss claims. Automated software and regular CPAs typically default to filing this as a standard "Capital Loss" or fail to support it with the required forensics. A theft loss deduction is not a math equation; it is a legal finding of fraud. If your preparer lacks expertise in financial forensics, they will likely leave you with massive tax bills or trigger a hostile IRS audit.
Q: I already filed my taxes, and I have no idea what my CPA actually did. Can you check?
A: This is the most common situation we see. The vast majority of victims have incorrectly filed tax returns, leaving massive amounts of money and future write-offs on the table. You might have a ticking time bomb in your tax return and not even know it. We can review your tax return and map out the exact forensic strategy needed to amend your filing and claw back the money you overpaid.
Q: What evidence do I need to prove it was a "Theft" and not just a bad investment?
A: The IRS requires more than just a police report. You must prove privity (a direct connection to the thief) and criminal intent (that the platform was fraudulent from the start). DDG can build a Forensic Report that provides the objective expert support the IRS demands to protect your claim.
Q: What if I didn't save screenshots, or the scam website is down?
A: Missing evidence is the #1 reason standard claims are rejected, but it is not fatal if you have the right support. DDG maintains a proprietary Intelligence Database of scams. In many cases, we can support your claim.
Q: What if I was scammed multiple times (e.g., a "Recovery Scam")?
A: This is unfortunately common. If you lost money to an initial investment scam and then paid a second "tax fee" or "recovery fee" to get it back, each distinct fraud event must be documented. DDG analyzes these complex, multi-layered losses to maximize your deductible amount.
Q: Is there a deadline to file a Theft Loss claim?
A: There is a three-year window to amend past returns. You must file in the tax year the loss was discovered. However, there are exceptions that allow filing in a later year. Determining the exact year is a complex legal test. Filing in the wrong year can cause your entire deduction to be denied. We perform a specific Timeline Analysis to lock in the correct, defensible filing year for you.
Q: Does claiming a tax deduction now ruin my chances of recovering my money later?
A: Absolutely not. Claiming the theft loss with the IRS does not waive your legal rights, nor does it negatively impact any active litigation or claims. Under the "Tax Benefit Rule," if you utilize the tax deduction now to get a refund, and we successfully recover your stolen funds later, you simply report the recovered funds as a taxable event in the year you actually receive the payout. Do not leave available cash on the table today just because we are fighting for your restitution tomorrow.
Q: Should I wait to file my current taxes until I figure this out?
A: If you have not yet claimed your theft loss deduction correctly, filing your current tax return prematurely can create conflicts with your return history, ruin the multi-year refund cascade we build for you, and trigger IRS scrutiny. If you are due a refund, the IRS does not charge penalties for late filing. Contact us to file an extension while we review your case.
Best For: Victims of crypto scams, wire fraud, romance scams, and investment fraud seeking to recover lost funds via the IRS.
The Service: Multi-year tax reconstruction, Section 165 theft loss filing, amended returns (1040-X), Form 4684 discovery year analysis, and retirement penalty relief.
Why DDG & V2V: Standard CPAs fail at this. We combine cybercrime intelligence with advanced tax law to build audit-defensible filings that maximize your refund.
Action: Apply for Fraud Relief
Best For: Individuals, Families, W-2 Earners, and Small Business Owners (LLC/S-Corps) who have not been scammed.
The Service: Accurate, stress-free Federal & State tax return preparation, strategic tax planning, and standard amendments.
Why DDG & V2V: The net proceeds from your routine tax return directly fund DDG's investigations to hunt down cyber syndicates. Get your taxes done perfectly while funding the fight against fraud..
Action: File Standard Taxes
Note: If you are a victim of fraud or theft, please do not use this form. Go to Case Intake.
Tax preparation services are fulfilled by V2V Advisors LLC, an independent contractor retained by Digital Defenders Group. A portion of your fee covers DDG's administrative, technology, and investigative infrastructure.
