Tax Relief for Fraud Victims Act
Sponsored By: Representative Miller, Max L. [R-OH-7]
In Committee
Summary
Expanded tax relief for victims of theft and fraud by changing when theft and casualty losses count for tax deductions and by extending the time victims have to claim refunds.
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- Victims of theft and fraud would generally treat a theft loss as sustained in the year they discover it. For thefts involving fraud, deceit, or misrepresentation taxpayers could instead elect to treat the loss as sustained in the year it occurred, and the filing period for refund claims would not expire earlier than one year after discovery.
- People who withdraw retirement funds because of fraud-related theft losses could repay those distributions under rules like existing rollover relief but using a one-year discovery-based window, and the refund claim timing would follow that one-year rule.
- Homeowners with concrete-foundation damage caused by pyrrhotite get a special transition. The bill substitutes December 31, 2020 as the applicable date for those losses and makes the filing period not expire earlier than one year after enactment.
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Bill Overview
Analyzed Economic Effects
3 provisions identified: 3 benefits, 0 costs, 0 mixed.
Bigger casualty deductions for homeowners
If enacted, the bill would remove a statutory limit on personal casualty deductions. If you had a qualifying casualty loss, you could claim a larger deduction and lower your taxable income. These changes would apply to losses sustained in taxable years beginning after December 31, 2025.
Deduction for pyrrhotite home damage
If enacted, the bill would let homeowners treat qualifying pyrrhotite damage to their main home's concrete foundation as a personal casualty loss for years starting after December 31, 2020. The bill defines a "pyrrhotite-related personal casualty loss" as damage to a principal residence caused by foundation deterioration from pyrrhotite. For refund claims tied to those deductions, the filing period would be treated as not expiring earlier than one year after enactment, and one specific deadline rule would not apply.
More tax relief for fraud theft victims
If enacted, the bill would treat theft losses as sustained in the year you discover them. For thefts involving fraud, deceit, or misrepresentation (a definition the Treasury would issue), you would be allowed to elect to treat the loss as sustained in the year it occurred. For fraud-related theft losses, you would have at least one year after you discover the loss to file a claim for credit or refund, and one year after discovery to repay related distributions so they can be treated as repaid. These theft-loss rules would apply to losses in taxable years beginning after December 31, 2025, and the repayment rules would apply to distributions made after December 31, 2025.
Sponsors & CoSponsors
Sponsor
Miller, Max L. [R-OH-7]
OH • R
Cosponsors
Rep. Suozzi, Thomas R. [D-NY-3]
NY • D
Sponsored 6/29/2026
Rep. Buchanan, Vern [R-FL-16]
FL • R
Sponsored 8/10/2026
Roll Call Votes
No roll call votes available for this bill.
View on Congress.gov