You can report it like you would a stock in company that went bankrupt. Even though you don't actually have a 1099-B for your investment loss. Type "1099B" in to Search and hit enter:
- Click on "Form 1099-B" box in the Help pane on the right of your screen.
- Answer Yes to "Did you have investment income in 2025?"
- Click through the program until you get to "Let's import your tax info?", and click on "Enter a different way".
- Click to highlight the box with "Stocks, Bonds, Mutual Funds", then click on Continue.
- Enter something for "Bank or Brokerage" and click on Continue.
- Answer No to the Employee stock question.
- Continue through screens until you come to the page with Now, enter one sale on your Foreign 1099‑B
- Enter the information for your investment loss.
- For date sold or disposed enter the date you realized that LSSC was a fraudulent company.
Should put together a paper trail that shows you made the investment. For example, bank record showing Zelle transfer to friend, and whatever else you have that show you made the investment and that the company was fraudulent.
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