{"format":1,"id":"119-hr-9500","congress":119,"number":"H.R. 9500","kind":"bill","group":"bills","title":"Tax Relief for Fraud Victims Act","title_source":"Short Title(s) as Passed House","official_title":"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.","titles":[{"type":"Official Title as Introduced","title":"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."},{"type":"Short Titles from RFS (Referred to Senate) bill text","title":"Tax Relief for Fraud Victims Act"},{"type":"Short Title(s) as Passed House","title":"Tax Relief for Fraud Victims Act"},{"type":"Official Title from EH (Engrossed in House) bill text","title":"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."},{"type":"Display Title","title":"Tax Relief for Fraud Victims Act"},{"type":"Short Title(s) as Introduced","title":"Tax Relief for Fraud Victims Act"}],"outcome":"passed_house","law_number":null,"introduced":"2026-06-29","chambers":{"house":{"status":"roll_call","date":"2026-09-15","vote":{"id":"119-2026-h305","question":"On Motion to Suspend the Rules and Pass, as Amended","title":"Tax Relief for Fraud Victims Act","result":"Passed","yea":408,"nay":17,"present":0,"not_voting":8,"source":"https://clerk.house.gov/evs/2026/roll305.xml"}},"senate":{"status":"pending","date":null,"vote":null}},"president":{"status":"not_yet","date":null},"vice_president_tie_breaker":null,"latest_action":{"text":"Received in the Senate and Read twice and referred to the Committee on Finance.","date":"2026-09-16"},"nominees":null,"amendments":[],"other_votes":[],"crs_summary":{"date":"2026-06-29","stage":"Introduced in House","blocks":[{"k":"h","t":"Tax Relief for Fraud Victims Act"},{"k":"p","t":"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."},{"k":"p","t":"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."},{"k":"p","t":"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."},{"k":"p","t":"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"},{"k":"li","t":"waives the 10% penalty,","d":1},{"k":"li","t":"extends the deadline for filing a refund claim and eliminates certain restrictions on the amount of such refund, and","d":1},{"k":"li","t":"allows one year (beginning on the day after the theft loss is discovered) to repay such early distributions.","d":1}],"words":250},"summary":{"main_subject":{"text":"Amends the Internal Revenue Code of 1986 to repeal the limitation on deductions for personal casualty losses and to change the timing, refund-claim, and retirement-distribution rules for theft losses involving fraud, deceit, or misrepresentation.","cites":[{"label":"Sec. 2","href":"https://www.congress.gov/bill/119th-congress/house-bill/9500/text/eh#HAD5BCF654D154E17BBB18FBF3939AC11"}]},"core_areas":["Deduction limitation for personal casualty losses","Year in which theft losses involving fraud, deceit, or misrepresentation are treated as sustained","Refund claim deadlines for those theft losses","Retirement plan distributions relating to those theft losses","Treasury claim processing deadline and effective dates"],"what_it_does":[{"text":"Repeals the limitation on deductions for personal casualty losses by striking paragraph (5) of section 165(h) of the Internal Revenue Code of 1986.","cite":{"label":"Sec. 2","href":"https://www.congress.gov/bill/119th-congress/house-bill/9500/text/eh#HAD5BCF654D154E17BBB18FBF3939AC11"}},{"text":"Lets a taxpayer elect to treat a loss from theft involving fraud, deceit, or misrepresentation as sustained in the taxable year in which the loss occurs, instead of the year it is discovered.","cite":{"label":"Sec. 2","href":"https://www.congress.gov/bill/119th-congress/house-bill/9500/text/eh#HAD5BCF654D154E17BBB18FBF3939AC11"}},{"text":"Provides that the period for filing a credit or refund claim for such a theft loss deduction does not expire earlier than 1 year after the taxpayer discovers the loss, and section 6511(b)(2) does not apply to the claim.","cite":{"label":"Sec. 2","href":"https://www.congress.gov/bill/119th-congress/house-bill/9500/text/eh#HAD5BCF654D154E17BBB18FBF3939AC11"}},{"text":"Adds an exception under section 72(t)(2) for distributions relating to such theft losses for which a deduction is allowed, and sets a 1-year repayment period beginning the day after the taxpayer discovers the loss.","cite":{"label":"Sec. 2","href":"https://www.congress.gov/bill/119th-congress/house-bill/9500/text/eh#HAD5BCF654D154E17BBB18FBF3939AC11"}},{"text":"Requires the Secretary of the Treasury to process certain credit or refund claims, for specified personal casualty losses and the described distributions, not later than 2 years after the claim is filed.","cite":{"label":"Sec. 2","href":"https://www.congress.gov/bill/119th-congress/house-bill/9500/text/eh#HAD5BCF654D154E17BBB18FBF3939AC11"}},{"text":"Applies the amendments to losses sustained in taxable years beginning after December 31, 2025, and to specified personal casualty losses, including pyrrhotite-related foundation losses, sustained after December 31, 2020.","cite":{"label":"Sec. 2","href":"https://www.congress.gov/bill/119th-congress/house-bill/9500/text/eh#HAD5BCF654D154E17BBB18FBF3939AC11"}}],"unexpected":[{"category":"selective_carve_out","items":[{"cite":{"label":"Sec. 2","href":"https://www.congress.gov/bill/119th-congress/house-bill/9500/text/eh#HAD5BCF654D154E17BBB18FBF3939AC11"},"heading":"Repeal of limitation on deductions for personal casualty losses; increased taxpayer relief with respect to certain theft losses","effect":"Gives a separate refund-claim deadline of 1 year after enactment, with section 6511(b)(2) not applying, for personal casualty losses from damage to a principal residence by deterioration of a concrete foundation adversely impacted by pyrrhotite, sustained 2021 through 2025.","amount":null,"quote":"The term pyrrhotite-related personal casualty loss means any personal casualty loss (as defined in section 165(h)(3)(B) of the Internal Revenue Code of 1986) sustained after December 31, 2020, and before January 1, 2026"}]}],"version":{"type":"Engrossed in House","date":"2026-09-15","rule":"passed","href":"https://www.congress.gov/bill/119th-congress/house-bill/9500/text/eh"},"current":true,"model":"claude-sonnet-5-5","approved":"2026-10-12","approved_by":"checks"},"sources":{"congress_gov":"https://www.congress.gov/bill/119th-congress/house-bill/9500","text":"https://www.congress.gov/bill/119th-congress/house-bill/9500/text"},"card":{"image":"card/item/119-hr-9500.png","v":"798300d3d413","alt":"Votes on Record. H.R. 9500, 119th Congress: Tax Relief for Fraud Victims Act. House: 408 Yea, 17 Nay. Senate: not yet considered. Outcome: Passed House, 15 Sep 2026."}}