Tax Relief for Fraud Victims Act
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.
This bill, HB9500, seeks to amend the Internal Revenue Code to help victims of fraud by removing limits on tax deductions for personal losses caused by fraud. Currently, victims of fraud can only deduct losses up to a certain amount, but this bill would allow them to deduct more, offering greater financial relief.
The bill would impact individuals who have suffered personal losses due to fraud, deceit, or misrepresentation. By allowing them to deduct more of their losses from their taxable income, the bill aims to ease the financial burden these victims face.
As of June 29, 2026, the bill has been introduced and referred to the House Committee on Ways and Means. On July 1, 2026, the committee held a consideration and mark-up session and voted unanimously to report the bill in the nature of a substitute. This suggests that the committee supports the bill and recommends it for further consideration.
