Tax Relief for Fraud Victims Act
Where it stands
- Introduced6/29/26
- Passed HousePassed 9/15/26
- Senate
- President
- Law
Passed the House 408–17 on September 15, 2026 (Roll Call 305 →). Received in the Senate on September 16, 2026. No Senate action since.
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Roll calls on this bill
- Democratic212 Yea · 0 Nay · 2 Not voting
- Republican195 Yea · 17 Nay · 6 Not voting
- Independent / Other1 Yea · 0 Nay · 0 Not voting
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.
What happens next
The Senate must pass the same text, then it goes to the President.
If it isn't enacted by Jan 3, 2027, it expires when the 119th Congress ends.
All actions (13)
- 6/29/26Introduced in House
- 6/29/26Referred to the House Committee on Ways and Means.
- 7/1/26Committee Consideration and Mark-up Session Held
- 7/1/26Ordered to be Reported in the Nature of a Substitute by the Yeas and Nays: 39 - 0.
- 9/15/26Mr. Smith (MO) moved to suspend the rules and pass the bill, as amended.
- 9/15/26Considered under suspension of the rules. (consideration: CR H5687-5690)
- 9/15/26DEBATE - The House proceeded with forty minutes of debate on H.R. 9500.
- 9/15/26At the conclusion of debate, the Yeas and Nays were demanded and ordered. Pursuant to the provisions of clause 8, rule XX, the Chair announced that further proceedings on the motion would be postponed.
- 9/15/26Considered as unfinished business. (consideration: CR H5824-5825)
- 9/15/26Passed/agreed to in House: On motion to suspend the rules and pass the bill, as amended Agreed to by the Yeas and Nays: (2/3 required): 408 - 17 (Roll no. 305).
- 9/15/26On motion to suspend the rules and pass the bill, as amended Agreed to by the Yeas and Nays: (2/3 required): 408 - 17 (Roll no. 305). (text: CR H5687-5688)
- 9/15/26Motion to reconsider laid on the table Agreed to without objection.
- 9/16/26Received in the Senate and Read twice and referred to the Committee on Finance.