Tax Relief for Fraud Victims Act
The source supplies the latest action, but no lifecycle stage.
Latest action (16 Sep 2026): Received in the Senate and Read twice and referred to the Committee on Finance.
What this bill does
H.R. 9500, the Tax Relief for Fraud Victims Act, would amend the federal tax code to change how personal casualty and theft losses are treated. It would repeal a current limitation that generally restricts deductions for personal casualty losses, and it would create special rules for theft losses involving fraud, deceit, or misrepresentation, allowing victims to choose whether to claim the loss in the year it occurred or the year it was discovered. The bill also extends the deadline for filing tax credit or refund claims tied to such fraud-related theft losses, and addresses tax treatment of retirement account distributions connected to these losses, including allowing repayment within a set period. A separate provision extends similar relief for losses to home foundations damaged by pyrrhotite deterioration.
The bill primarily affects individual taxpayers who have suffered financial losses from fraud, scams, or theft-related misrepresentation, as well as homeowners with pyrrhotite-related foundation damage. It gives these taxpayers more flexibility in timing their tax deductions and more time to seek refunds, potentially easing the tax burden associated with recovering from such losses.
The bill was introduced by Rep. Max Miller (R-OH) on June 29, 2026, and referred to the House Committee on Ways and Means. On September 15, 2026, the House passed the bill as amended by a vote of 408–17 under a suspension of the rules, which requires a two-thirds majority. The bill now goes to the Senate for consideration before it could be sent to the President.
Plain-English summary generated by Bill100 AI from the official record. Always verify against the source below.
Official summary
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.
Timeline
16 Sep 2026
Received in the Senate and Read twice and referred to the Committee on Finance.
Common questions
- What does H.R. 9500 do?
- H.R. 9500, the Tax Relief for Fraud Victims Act, would amend the federal tax code to change how personal casualty and theft losses are treated. It would repeal a current limitation that generally restricts deductions for personal casualty losses, and it would create special rules for theft losses involving fraud, deceit, or misrepresentation, allowing victims to choose whether to claim the loss in the year it occurred or the year it was discovered. The bill also extends the deadline for filing tax credit or refund claims tied to such fraud-related theft losses, and addresses tax treatment of retirement account distributions connected to these losses, including allowing repayment within a set period. A separate provision extends similar relief for losses to home foundations damaged by pyrrhotite deterioration. The bill primarily affects individual taxpayers who have suffered financial losses from fraud, scams, or theft-related misrepresentation, as well as homeowners with pyrrhotite-related foundation damage. It gives these taxpayers more flexibility in timing their tax deductions and more time to seek refunds, potentially easing the tax burden associated with recovering from such losses. The bill was introduced by Rep. Max Miller (R-OH) on June 29, 2026, and referred to the House Committee on Ways and Means. On September 15, 2026, the House passed the bill as amended by a vote of 408–17 under a suspension of the rules, which requires a two-thirds majority. The bill now goes to the Senate for consideration before it could be sent to the President.
- Has H.R. 9500 become law?
- The source does not supply a confirmed lifecycle stage for H.R. 9500. Check the latest action and official source below.
- Who sponsored H.R. 9500?
- H.R. 9500 was sponsored by Rep. Miller, Max L. [R-OH-7] (R-OH), with 2 cosponsors.
- What's the latest action on H.R. 9500?
- Received in the Senate and Read twice and referred to the Committee on Finance. (16 Sep 2026).
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