Help!

[Cavemanhead]

A Private Trust fund I was an investor in was shut down by the SEC as part of a larger investigation. The Trust fund itself has no wrongdoing, but all the assets of the holders are frozen until the larger case is resolved (projecting summer 09).

I have no access to any income that may have been generated in 07. I want to do what's right, but how do I pay taxes on an investment that is held by another institution (the SEC)?

I can see owing on all the earnings once the account is freed up (in other words, I'll have to pay my 2007 earnings in 09 when the account is "freed"...

Does this sound right?

[LdiJ]

Originally Posted by Cavemanhead

A Private Trust fund I was an investor in was shut down by the SEC as part of a larger investigation. The Trust fund itself has no wrongdoing, but all the assets of the holders are frozen until the larger case is resolved (projecting summer 09).

I have no access to any income that may have been generated in 07. I want to do what's right, but how do I pay taxes on an investment that is held by another institution (the SEC)?

I can see owing on all the earnings once the account is freed up (in other words, I'll have to pay my 2007 earnings in 09 when the account is "freed"...

Does this sound right?

Please get yourself a consult with a local tax professional who can review all of your documentation. I am not willing to answer your question without reviewing the docs.

I will tell you though, that if you received any 1099s, or K1s from the trust, you can't simply ignore them for 2007.