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, known as the Tax Relief for Fraud Victims Act, aims to modify the Internal Revenue Code to eliminate the restriction on personal casualty loss deductions and to enhance tax relief for individuals who suffer theft losses due to fraud, deceit, or misrepresentation. The proposed changes would primarily benefit victims of financial fraud who have experienced significant financial losses.
The bill was introduced on June 29, 2026, and has since moved through several stages. As of the latest update on September 15, 2026, the House of Representatives has passed the bill, which now awaits further action in the legislative process. Key milestones include the bill being referred to the House Committee on Ways and Means, followed by a committee consideration and mark-up session. The House ultimately voted to suspend the rules and pass the bill, as amended.
The legislative history shows active debate and significant support in the House. The bill was referred to the committee, underwent a mark-up session, and was reported favorably. The House then engaged in a debate and a vote, resulting in the bill being passed as amended. The bill is now in a position where it may move forward to the Senate for further consideration.
