H.R. 9500: Tax Relief for Fraud Victims Act

People who lose money to fraud could get more tax relief under H.R. 9500, the Tax Relief for Fraud Victims Act. The bill would repeal the limit that allows a personal casualty loss deduction only when the loss comes from a federal or state declared disaster or offsets casualty gains.

It would also let taxpayers claim a deduction for theft losses involving fraud, deceit or misrepresentation in the year the loss occurs rather than the year it is discovered, and give at least one year after discovery to claim a refund. For early withdrawals from a retirement plan caused by such a theft, the bill would waive the 10% penalty, extend the refund deadline, and allow one year after discovery to repay the withdrawal.