Tax Relief for Fraud Victims Act

[Congressional Bills 119th Congress] [From the U.S. Government Publishing Office] [H.R. 6999 Introduced in House (IH)] <DOC> 119th CONGRESS 2d Session H. R. 6999 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. _______________________________________________________________________ IN THE HOUSE OF REPRESENTATIVES January 9, 2026 Mr. Miller of Ohio (for himself and Mr. Suozzi) introduced the following bill; which was referred to the Committee on Ways and Means _______________________________________________________________________ A BILL 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. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. SHORT TITLE. This Act may be cited as the ``Tax Relief for Fraud Victims Act''. SEC. 2. REPEAL OF LIMITATION ON DEDUCTIONS FOR PERSONAL CASUALTY LOSSES; INCREASED TAXPAYER RELIEF WITH RESPECT TO CERTAIN THEFT LOSSES. (a) Repeal of Limitation on Deductions for Personal Casualty Losses.--Section 165(h) of the Internal Revenue Code of 1986 is amended by striking paragraph (5). (b) Certain Theft Losses Sustained During Taxable Year of Choice; Extension of Period of Limitation for Credit or Refund Claims for Certain Theft Losses.-- (1) Certain theft losses sustained during taxable year of choice.--Section 165(e) of such Code is amended to read as follows: ``(e) Theft Losses.--For purposes of subsection (a)-- ``(1) In general.--Except as provided in paragraph (2), any loss arising from theft shall be treated as sustained during the taxable year in which the taxpayer discovers such loss. ``(2) Theft losses involv