Tax Relief for Fraud Victims Act
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed House
- Passed Senate
- To President
- Became Law
Overview
This bill, the Tax Relief for Fraud Victims Act, aims to provide increased tax relief for individuals who have experienced theft losses due to fraud, deceit, or misrepresentation. It repeals a limitation on deducting personal casualty losses and modifies tax laws to allow for a longer period to claim credits or refunds for these specific theft losses. The bill also addresses the repayment of distributions related to these losses, offering a more extended timeframe for taxpayers to recover funds.
Key provisions
- Repeals the limitation on deducting personal casualty losses under Internal Revenue Code Section 165(h).
- Allows taxpayers to treat theft losses involving fraud, deceit, or misrepresentation as sustained in the year the loss is discovered.
- Extends the period of limitation for claiming credits or refunds for theft losses involving fraud, deceit, or misrepresentation to one year after discovery.
- Modifies rules regarding distributions related to theft losses involving fraud, deceit, or misrepresentation, allowing for repayment within a 1-year timeframe after loss discovery.
- Creates a cross-reference to relevant sections for the period of limitations for credit or refund claims related to theft losses.
- Specifies that the bill’s changes apply to losses sustained starting in taxable years after December 31, 2025.
Who is affected
- Taxpayers who have experienced theft losses due to fraud, deceit, or misrepresentation.
Bill text
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