Hedge Fund Advisor Josh Rosner Claiming Financial Disability to Get IRS Refunds

November 8, 2018 James Heinsman In the News

Joshua Rosner became well known after he correctly predicted the collapse of the US housing market, the dangers lurking behind the doors of Freddie Mac and Freddie Mae, and the subsequent financial crisis. He was subsequently sought after as a thought leader on business news programs and as a witness in Congress. He even ended up authoring a book about the financial disaster, which became a bestseller. On the back of the book Rosner is described as an advisor to “global policy-makers and institutional investors.

Despite his renown and his advising some of the world’s largest hedge funds, he was unable to handle his own personal finances.

Although he never stopped paying his taxes, he did not file his yearly tax forms with the IRS. Finally, in 2013 his accountants got things sorted out and filed his tax returns for years 2006 through 2010. The forms showed that he was entitled to refunds for 2006, 2007 and 2008. The IRS denied his refund request saying that he missed the deadline for requesting refunds for overpayment of taxes, which according to the letter of the law is only up to three years after the taxes were paid.

However, the law allows people to get refunds even after the three-year limit if they can prove financial disability. The law defines financial disability as a “physical or mental impairment of the individual which can be expected to result in death, or which has lasted or can be expected to last for a continuous period of not less than 12 months.”

Rosner submitted statements to the IRS from two doctors asserting that at the time he suffered from post-traumatic stress and adjustment disorder with mixed anxiety and depression, mostly caused by the 2001 World Trade Center attack.

One psychiatrist wrote that

“As many as 40 former colleagues and close friends died that day and he spent the next year going to funerals, memorial services and consoling the grieving spouses and families of the deceased.”

After the IRS denied Rosner’s request, he filed an appeal. One appellate officer granted Rosner a refund for his 2007 taxes for $89,512. A second officer denied his requests for refunds for 2006 and 2008, an amount said to be about $500,000. This second denial led Rosner to bring his lawsuit against the IRS.

financial disabiltiy, IRS, Joshua Rosner, PTSD, refunds,

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