# H.R. 9500 (119th): Tax Relief for Fraud Victims Act

Tax Relief for Fraud Victims Act 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.

## How this bill is scored

Tier: no Tier 1 record. A bill with no record cannot newly become Tier 1.
Lane: fraud. Category: not stored. Lane tag: not stored.
Lane: fraud_victims. Category: not stored. Lane tag: not stored.
Lane: justice. Category: not stored. Lane tag: not stored.
Lane: tax_policy. Category: not stored. Lane tag: not stored.
Lane: tax_relief. Category: not stored. Lane tag: not stored.
Lane: theft_loss_relief. Category: not stored. Lane tag: not stored.
Tier 1 sign-off: no record. A bill with no record cannot newly become Tier 1.
Stored polarity: mixed. Only tags the rules mark scoreable on a mixed bill are scored. A yea can draw a penalty or a credit according to the tag. A nay on a tag scored as good can draw a penalty.
Roll 305: On Motion to Suspend the Rules and Pass, as Amended. Vote type: final_passage.
Polarity rationale: Reviewed enrichment (llm_import) polarity: The measure aims at relief for victims of fraud, which reflects a real concern for justice toward the wronged. It does not directly restrain fraud or punish fraudsters, and its main content is ordinary tax-deduction and refund mechanics with revenue and fairness trade-offs. That combination of a just aim with prudential tax policy fits mixed rather than good or unclear.
Theological note: Scripture gives weight to protecting the vulnerable from injustice and to honest dealing, and to restoring those wronged by theft or deceit. This bill relates to those concerns by easing financial burdens on people who suffered fraud-based losses. It is primarily a tax and fiscal measure, however, so its moral weight depends on prudential questions about fairness, revenue, and the scope of relief rather than a clear direct restraint of evil.

## Recorded votes

Roll 305: On Motion to Suspend the Rules and Pass, as Amended. Yea 408 · Nay 17 · Other 8.

HTML: https://justmeasure.org/bill/hr-9500-119/