Tax Relief for Fraud Victims Act
Official title: To amend the Internal Revenue Code of 1986 to repeal the limitation on deductions for personal casualty losses and to provide for increased taxpayer relief wit… Show full official titleShow less
Official title: To amend the Internal Revenue Code of 1986 to repeal the limitation on deductions for personal casualty losses and to provide for increased taxpayer relief with respect to theft losses involving fraud, deceit, or misrepresentation.
| Date | Chamber | What was voted on | Result | Yes–No | |
|---|---|---|---|---|---|
| Sep 15, 2026 | House · vote #305 | On Motion to Suspend the Rules and Pass, as Amended | Passed | 408–17 | See who voted → |
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Received in the Senate and Read twice and referred to the Committee on Finance.
Tax Relief for Fraud Victims Act
This bill expands the federal tax deduction for personal casualty and theft losses by eliminating certain limits, including the requirement that such losses arise from certain disasters. The bill also extends the tax refund deadline and modifies certain retirement plan rules related to certain fraud losses.
The bill repeals the limit on the federal tax deduction for personal casualty losses (not attributable to a trade, business, or transaction entered into for profit) that allows such losses only if arising from a federal or state declared disaster or to the extent that such losses offset personal casualty gains.
The bill allows taxpayers to elect to claim a tax deduction for losses arising from a theft involving fraud, deceit, or misrepresentation in the tax year such losses occur (rather than in the tax year discovered). Further, the bill extends the deadline for a refund claim related to a tax deduction for such losses to no less than one year after the date on which the losses are discovered and eliminates certain restrictions on the amount of such refund.
For early distributions from a qualified retirement plan arising from a theft loss involving fraud, deceit, or misrepresentation for which a tax deduction is allowed, the bill
- waives the 10% penalty,
- extends the deadline for filing a refund claim and eliminates certain restrictions on the amount of such refund, and
- allows one year (beginning on the day after the theft loss is discovered) to repay such early distributions.
- Engrossed in House Formatted Text PDF Formatted XML
- Introduced in House Formatted Text PDF Formatted XML
- Referred in Senate Formatted Text PDF Formatted XML
Cite this page
U.S. Congress. (2026). H.R. 9500: Tax Relief for Fraud Victims Act. 119th Congress. Open America. https://openamerica.io/bill/119-HR-9500/
"H.R. 9500: Tax Relief for Fraud Victims Act." 119th Congress, 2026, Open America, https://openamerica.io/bill/119-HR-9500/.
H.R. 9500, 119th Cong. (2026), https://openamerica.io/bill/119-HR-9500/.
[H.R. 9500: Tax Relief for Fraud Victims Act](https://openamerica.io/bill/119-HR-9500/)