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Tax Relief for Fraud Victims Act: Restoring Deductions and Relief for Fraud Losses

This bill repeals the limitation on deductions for personal casualty losses, allowing taxpayers to deduct property losses not related to a federally declared disaster. It specifically aids victims of theft involving fraud, deceit, or misrepresentation by allowing them to elect the tax year in which to treat the loss as sustained and by extending the statute of limitations for refund claims. Furthermore, it waives the 10% early withdrawal penalty on retirement plan distributions related to such fraud losses.
Key points
Repeals the limitation that restricted personal casualty loss deductions (e.g., property damage) only to federally declared disasters.
Allows victims of theft involving fraud, deceit, or misrepresentation to choose whether to treat the loss as sustained in the year it occurred or the year it was discovered.
Waives the 10% penalty on early distributions from qualified retirement plans if the distribution relates to a theft loss involving fraud or deceit.
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Introduced
Citizen Poll
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Additional Information
Print number: 119_HR_6999
Sponsor: Rep. Miller, Max L. [R-OH-7]
Process start date: 2026-01-09
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Summarized by: gemini-3-pro-preview
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Tax Relief for Fraud Victims Act

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 119_HR_6999.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2026-01-09.

What are the main provisions?

Key points include:

  • Repeals the limitation that restricted personal casualty loss deductions (e.g., property damage) only to federally declared disasters.
  • Allows victims of theft involving fraud, deceit, or misrepresentation to choose whether to treat the loss as sustained in the year it occurred or the year it was discovered.
  • Waives the 10% penalty on early distributions from qualified retirement plans if the distribution relates to a theft loss involving fraud or deceit.
What is the specific legal status?

The current status is Introduced.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Rep. Miller, Max L. [R-OH-7].

What is the latest detailed status?

The latest detailed status is: Referred to the House Committee on Ways and Means.

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2026-01-24.

CATEGORIES

Taxes