What does it mean to be closed by the IRS

[ChuckC]

I am invested in a managed Forex account that was just shut down by the IRS. Equipped with search warrants they left with all the managers computers and papers. I don't wish to ID him just yet, it seemed as if he was trying hard to obey the rules.

Why would that have happened and how long does that take? Is it more likely that I will get my money back than if he were shut down by the FBI like my Green Tree account? I don't think I will get a penny back of that. Twice now.

Chuck

 

[Pharaoh]

IRS, FBI - either way, they are here from the government and will help you in their own unique way.


Every now and then the IRS gets carried away and might kick the door down and grab the records for something that later turns out to be a minor issue. On the other hand, 90+ percent of the time an IRS raid would qualify as a very bad thing.

Was this a pooled account or do you have investor access to look at your money in an account at a forex brokerage that's held in your name?

If it's a pooled account, it could be a long time (perhaps forever) until you see any of your money again. If the money is with a broker and is in your name, you probably can withdraw it no matter what has become of your account manager.

 

[ChuckC]

Nope. Pooled. I had both a cash account and an IRA. For the IRA, what in blazes is the Trust company for? Why does a TRUST company not have some fiduciary responsibility?

I anticipate that I will have to fight them in charging me maintenance fees for that account.

Thanks, even though it is not happy news.

Chuck