Taxpayers are allowed a capital loss for worthless securities held as capital assets. The loss can be taken only when the security becomes wholly worthless; losses for partial worthlessness cannot be claimed.
Where this becomes tricky, is in determining the year in which the stock became worthless. Keep in mind that this burden of proof is on the taxpayer.
Not receiving K-1's may be one factor, but probably not sufficient in of itself at this point.
You need to do more to support your position; (1) Did you write letters (sent certified mail return receipt requested) asking about your K-1, (2) Did you receive any correspondence from the company indicating that you would not receive any more K-1's and a reason as to why, (3) Have you had an attorney send any correspondence. (4) Have you notified the company that you are abandoning your interest, (4) Have you inquired with the company to purchase your interest.
All of the above are additional items that you should look into and follow-up on the ones that make sense to build your case for a worthless stock deduction.
*A reminder that posts in a forum such as this do not constitute tax advice.
Also keep in mind the date of replies, as tax law changes.
