# 119-hr-2163: No Penalties for Victims of Fraud Act

119-hr-2163, No Penalties for Victims of Fraud Act, is a 119th Congress bill sponsored by Rep. Stevens, Haley M. [D-MI-11] (D-MI); status introduced; PRIA reads it as touching household money (as of 2025-12-20).

- Canonical: https://policyrisk.com/legislation/119-hr-2163
- As of: 2025-12-20
- Plain-text twin of the page above; the HTML and this file carry the same facts.

## Facts
- Bill: 119-hr-2163
- Congress: 119
- Title: No Penalties for Victims of Fraud Act
- Status: introduced
- Introduced: 2025-03-14
- Sponsor: Rep. Stevens, Haley M. [D-MI-11] (D-MI)
- Cosponsors: 0
- Policy area: Taxation
- Touches household money: yes
- Last recorded action: 2025-12-20

## Summary

**Waives the early withdrawal penalty for retirement distributions made because an individual is a victim of fraud.** The bill would add a new exception to the tax code that defines a "victim of fraud" through an application, a Treasury designation, and law‑enforcement or court documentation, and it would allow repayment under rules like existing subparagraph H(v). - Victims of fraud: Individuals who can document a fraudulent act to a law enforcement agency or court and who are designated by the Secretary could take distributions from eligible retirement plans without the early‑withdrawal penalty, subject to the bill's application process and rules. - Federal administration: The Secretary of the Treasury must issue guidance within 180 days on how to claim the waiver and run a public awareness campaign to inform people about the relief.

## Provisions PRIA read

- No penalty for fraud-hit retirement withdrawals: benefit, medium. If enacted, you could ask Treasury to waive the early withdrawal penalty if you took money out because you were a fraud victim. To qualify, you would apply in the time and way Treasury sets and include law‑enforcement or court documents showing the fraud. Treasury would need to designate you as a v…
- Treasury rules and outreach on penalty waivers: benefit, low. If enacted, Treasury would issue rules within 180 days explaining how to claim the penalty waiver and what documents to file. Treasury would also run a public awareness campaign as soon as practicable to inform people and advisers about the relief. The bill does not set a budget or methods for the…

## Related bills

- 119-hr-3151: SHIPS for America Act of 2025
- 119-hr-3816: Weather Act Reauthorization Act of 2025
- 119-hr-7977: Energy Bills Relief Act
- 119-hr-7481: Department of Homeland Security Appropriations Act, 2026
- 119-hr-7973: Momnibus Act
- 119-hr-5089: Weather Act Reauthorization Act of 2025

## Sources
- [119-hr-2163 on Congress.gov](https://www.congress.gov/bill/119th-congress/house-bill/2163)

## Related
- [119-hr-3151: SHIPS for America Act of 2025](https://policyrisk.com/legislation/119-hr-3151)
- [119-hr-3816: Weather Act Reauthorization Act of 2025](https://policyrisk.com/legislation/119-hr-3816)
- [119-hr-7977: Energy Bills Relief Act](https://policyrisk.com/legislation/119-hr-7977)
- [119-hr-7481: Department of Homeland Security Appropriations Act, 2026](https://policyrisk.com/legislation/119-hr-7481)
- [119-hr-7973: Momnibus Act](https://policyrisk.com/legislation/119-hr-7973)
- [119-hr-5089: Weather Act Reauthorization Act of 2025](https://policyrisk.com/legislation/119-hr-5089)
- [All bills in Congress](https://policyrisk.com/legislation)

Source: PRIA, https://policyrisk.com/legislation/119-hr-2163 (as of 2025-12-20).