Madoff sentenced 150 years.

For 2005-2007, the income earned and reported is not really “income”, however, it is a return of capital. Income reported for those years can be removed by filing an amended tax return in 2009. For losses dating earlier than 2005, to the extent that the taxpayer has basis, they will be allowed to deduct their losses as a theft loss in accordance with the IRS guidelines subject to terms and conditions.