H.R. 9500 · 119th Congress · Taxation
Tax Relief for Fraud Victims Act
Expands tax deductions for fraud victims and extends refund deadlines. AI-read
What it does
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.
Summary by the Congressional Research Service, Jun 29, 2026 (Introduced in House). CRS summarizes bills impartially; it does not take positions.
Roll call votes
| Date | Question | Party split (yea) | Result |
|---|---|---|---|
| Sep 15, 2026 House roll 665 |
On Motion to Suspend the Rules and Pass, as AmendedTax Relief for Fraud Victims Act | D 212–0 · R 195–17 · I 1–0 |
Passed 408–17 |
What members said about it
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Today, Congressman Joe Courtney (CT-02) and Congressman John Larson (CT-01) applauded House passage of their Casualty Loss Dedication Restoration Act, which passed the House last night within the larger bill H.R. 9500 by a vote of 408-17.
“House passage of this bill to bring long overdue relief to Connecticut homeowners impacted by crumbling foundations is only possible because of Congressman John Larson’s work and leadership on the Ways and Means Committee.”
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Today, Reps. John B. Larson (CT-01) and Joe Courtney (CT-02) applauded House passage of their Casualty Loss Dedication Restoration Act, which passed the House last night within the larger bill, H.R. 9500, by a vote of 408-17.
“More than a decade since the crumbling foundations crisis was first discovered in our region, up to 35,000 homes have been impacted.”
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House Passes Suozzi-Led Bipartisan Bill to Protect Fraud Victims from Tax Penalties
The House today passed H.R. 9500, the Tax Relief for Fraud Victims Act, a bipartisan bill co-led by Congressman Tom Suozzi (D-NY) to ensure victims of fraud are not forced to pay taxes on the money scammers stole from them.
“Americans are being scammed at unbelievable rates, and our seniors are especially vulnerable. Right now, victims of fraud and theft are hit twice: first by the scammer, and then by the IRS when they’re taxed on the money stolen from them.”
Latest action
Sep 16, 2026 · Received in the Senate and Read twice and referred to the Committee on Finance.