Tax Relief for Fraud Victims Act

This bill would change federal tax rules for personal casualty and theft losses. It would remove the current limit on deducting personal casualty losses. For theft losses involving fraud, deceit, or misrepresentation, taxpayers could choose to claim the loss in the tax year the loss happened instead of the year it was discovered, and would have at least one year after discovering the loss to file a refund claim. It would also waive the extra tax on early retirement account withdrawals related to these fraud losses and let people repay those withdrawals within one year of discovering the loss. The changes would apply to losses in tax years beginning after December 31, 2025, and to withdrawals made after that date.

Full text and official record on Congress.gov

Sponsors

• Max L. Miller Republican sponsor
• 1 cosponsors