The House debated H.R. 9500, the Tax Relief for Fraud Victims Act, which would let taxpayers deduct losses from fraud and theft on their federal taxes, extend deadlines for claiming related refunds, and waive early-withdrawal penalties on retirement funds taken out because of fraud losses. Speakers from both parties spoke in favor. Jason Smith, Max Miller, and Glenn Grothman said current law makes fraud victims pay taxes on stolen money and noted the large sums Americans lose to scams, especially older adults. Judy Chu and Thomas Suozzi called it a bipartisan fix that ends a longstanding restriction limiting such deductions to federally declared disasters.Written by AI from the debate. Updated .
“I want the House to pass this bill. It gives tax relief to people who lose money to fraud, scams, or other personal losses.”
“Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 9500) 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, as amended. The Clerk read the title of the bill. The text of the bill is as follows:”
Official Congressional Record
Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 9500) 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, as amended. The Clerk read the title of the bill. The text of the bill is as follows:
“I want the House to pass this bill. Current law makes fraud victims pay taxes on money stolen from them. This bill lets victims deduct those losses on their taxes and gives them more time to claim refunds.”
“Mr. Speaker, I yield myself such time as I may consume. Mr. Speaker, I rise today in support of H.R. 9500, the Tax Relief for Fraud Victims Act, introduced by Representative Miller of Ohio. Many of our fellow Americans have been the victims of fraud and suffered tremendous losses, both financial and otherwise. The hardship these victims endure in rebuilding their finances or recovering from identity theft is made all the worse by the fact that under current law they are also required to pay taxes on their scam-related losses. This legislation provides much-needed relief for victims of fraud by allowing taxpayers to deduct the losses related to the fraud scheme that stole from them. Moreover, it recognizes that not all crimes are discovered at the time that they occur. The bill gives taxpayers more time to amend previous tax returns in order to receive credits and refunds on their losses. I appreciate Representative Miller’s tireless efforts to not only combat fraud and punish the bad actors who scam taxpayers but to go the extra mile and find solutions for the victims of such fraud so that they are not penalized by the IRS. Lastly, I must mention the valuable input that our Ways and Means colleagues, Representatives Steube and Panetta, had in crafting this legislation. During its markup, we agreed to work together to improve the underlying policy to allow for retroactive deductibility of fraud- related losses. I am pleased that this bill reflects that additional bipartisan approach. Mr. Speaker, I reserve the balance of my time.”
Official Congressional Record
Mr. Speaker, I yield myself such time as I may consume. Mr. Speaker, I rise today in support of H.R. 9500, the Tax Relief for Fraud Victims Act, introduced by Representative Miller of Ohio. Many of our fellow Americans have been the victims of fraud and suffered tremendous losses, both financial and otherwise. The hardship these victims endure in rebuilding their finances or recovering from identity theft is made all the worse by the fact that under current law they are also required to pay taxes on their scam-related losses. This legislation provides much-needed relief for victims of fraud by allowing taxpayers to deduct the losses related to the fraud scheme that stole from them. Moreover, it recognizes that not all crimes are discovered at the time that they occur. The bill gives taxpayers more time to amend previous tax returns in order to receive credits and refunds on their losses. I appreciate Representative Miller’s tireless efforts to not only combat fraud and punish the bad actors who scam taxpayers but to go the extra mile and find solutions for the victims of such fraud so that they are not penalized by the IRS. Lastly, I must mention the valuable input that our Ways and Means colleagues, Representatives Steube and Panetta, had in crafting this legislation. During its markup, we agreed to work together to improve the underlying policy to allow for retroactive deductibility of fraud- related losses. I am pleased that this bill reflects that additional bipartisan approach. Mr. Speaker, I reserve the balance of my time.
“I want the House to pass this bill. Right now, people who lose their money to scams cannot deduct those losses on their taxes, so they still have to pay taxes on money that was stolen from them. Scams cost Americans nearly $21 billion in 2025. This bill lets victims deduct fraud losses from their taxes, gives them more time to claim refunds, and removes tax penalties on stolen retirement savings.”
“Mr. Speaker, I rise in support of H.R. 9500, the Tax Relief for Fraud Victims Act. Right now, if a scammer steals your life savings through a romance scam, a fake investment scheme, or a business email fraud, the Federal tax code adds insult to injury. It is quite ridiculous. Current law largely bars victims from deducting those losses unless they are tied to a Federal- or State-declared disaster. That means every American who loses their retirement accounts to Ponzi schemes or cryptocurrency fraud gets absolutely no relief, while government still treats their stolen money as if it were untouched income. Per the FBI’s 2025 Internet Crime Report, cyber-enabled crimes defrauded Americans of nearly $21 billion in just 2025 alone, a 26- percent jump in losses from 2024, with seniors hit hardest, at $7.7 billion. Our constituents are being victimized twice: once by the criminal and again by the tax code. H.R. 9500 fixes this. It restores the deduction for theft losses involving fraud and deceit. It extends the deadline for victims to claim refunds once fraud is discovered. It removes harsh penalties on retirement funds stolen by scammers. I am proud to have introduced this commonsense legislation alongside my colleague Representative Suozzi. Mr. Speaker, I urge my colleagues to support H.R. 9500.”
Official Congressional Record
Mr. Speaker, I rise in support of H.R. 9500, the Tax Relief for Fraud Victims Act. Right now, if a scammer steals your life savings through a romance scam, a fake investment scheme, or a business email fraud, the Federal tax code adds insult to injury. It is quite ridiculous. Current law largely bars victims from deducting those losses unless they are tied to a Federal- or State-declared disaster. That means every American who loses their retirement accounts to Ponzi schemes or cryptocurrency fraud gets absolutely no relief, while government still treats their stolen money as if it were untouched income. Per the FBI’s 2025 Internet Crime Report, cyber-enabled crimes defrauded Americans of nearly $21 billion in just 2025 alone, a 26- percent jump in losses from 2024, with seniors hit hardest, at $7.7 billion. Our constituents are being victimized twice: once by the criminal and again by the tax code. H.R. 9500 fixes this. It restores the deduction for theft losses involving fraud and deceit. It extends the deadline for victims to claim refunds once fraud is discovered. It removes harsh penalties on retirement funds stolen by scammers. I am proud to have introduced this commonsense legislation alongside my colleague Representative Suozzi. Mr. Speaker, I urge my colleagues to support H.R. 9500.
“I want the House to pass this bill. Scammers steal money from people, especially older Americans who cannot easily earn it back. Right now, tax laws make it hard for these victims to deduct their losses, get tax refunds, or use retirement money to recover. This bill fixes those rules so the tax code does not make things harder for victims of fraud.”
“Mr. Speaker, that was a good speech by Mr. Suozzi. Mr. Speaker, I rise in support of H.R. 9500, the Tax Relief for Fraud Victims Act. For many Americans, financial security means decades of hard work, setting aside money paycheck after paycheck, saving for retirement and making sacrifices so their family will always have something to fall back on. A criminal can take away that security in a matter of days. Financial scammers can involve someone posing as a trusted adviser, a fraudulent investment, or online relationship built around deception. By the time a victim discovers what happened, the money is gone and the person responsible may be difficult to find. These people are experts at gaining people’s trust. For an older American living on a fixed income, there may be little opportunity to replace those savings. The consequences can affect everything from paying the mortgage to affording everyday expenses. Our tax laws should provide a fair opportunity for these victims to claim relief and begin rebuilding. Unfortunately, restrictions on personal theft loss deductions can prevent victims from deducting qualifying losses. Refund deadlines can create another obstacle when someone discovers the fraud years after it occurred. The Tax Relief for Fraud Victims Act would address these problems by expanding access to personal casualty and theft loss deductions and giving qualifying victims additional flexibility and time to seek refunds. The bill recognizes the damage these crimes can do to retirement savings. It would provide relief from the early withdrawal penalty for qualifying retirement distributions connected to theft losses and allow eligible amounts to be repaid into retirement accounts. In addition to losing money, you can be penalized right now with early withdrawal penalties. These provisions would help people who are trying to put their finances back together after being deceived. I have dealt with some of these people. They are so crafty. Even surprisingly intelligent people can be taken advantage of. A tax deduction cannot restore everything, but Congress can make sure that unnecessary tax burdens do not make an already difficult recovery even harder. We should continue pursuing the criminals responsible while ensuring that their victims receive fair treatment under the tax code. Mr. Speaker, one more time, I thank Chairman Smith and Congressman Miller for their work on this legislation, and I urge my colleagues to vote ``yes.’’”
Official Congressional Record
Mr. Speaker, that was a good speech by Mr. Suozzi. Mr. Speaker, I rise in support of H.R. 9500, the Tax Relief for Fraud Victims Act. For many Americans, financial security means decades of hard work, setting aside money paycheck after paycheck, saving for retirement and making sacrifices so their family will always have something to fall back on. A criminal can take away that security in a matter of days. Financial scammers can involve someone posing as a trusted adviser, a fraudulent investment, or online relationship built around deception. By the time a victim discovers what happened, the money is gone and the person responsible may be difficult to find. These people are experts at gaining people’s trust. For an older American living on a fixed income, there may be little opportunity to replace those savings. The consequences can affect everything from paying the mortgage to affording everyday expenses. Our tax laws should provide a fair opportunity for these victims to claim relief and begin rebuilding. Unfortunately, restrictions on personal theft loss deductions can prevent victims from deducting qualifying losses. Refund deadlines can create another obstacle when someone discovers the fraud years after it occurred. The Tax Relief for Fraud Victims Act would address these problems by expanding access to personal casualty and theft loss deductions and giving qualifying victims additional flexibility and time to seek refunds. The bill recognizes the damage these crimes can do to retirement savings. It would provide relief from the early withdrawal penalty for qualifying retirement distributions connected to theft losses and allow eligible amounts to be repaid into retirement accounts. In addition to losing money, you can be penalized right now with early withdrawal penalties. These provisions would help people who are trying to put their finances back together after being deceived. I have dealt with some of these people. They are so crafty. Even surprisingly intelligent people can be taken advantage of. A tax deduction cannot restore everything, but Congress can make sure that unnecessary tax burdens do not make an already difficult recovery even harder. We should continue pursuing the criminals responsible while ensuring that their victims receive fair treatment under the tax code. Mr. Speaker, one more time, I thank Chairman Smith and Congressman Miller for their work on this legislation, and I urge my colleagues to vote ``yes.’’
“I want the House to pass this bill. It protects people who had money or identities stolen from having to pay extra taxes on those losses.”
“Mr. Speaker, I yield myself the balance of my time. Mr. Speaker, we know that bad actors and fraudsters prey on Americans every day by stealing money, identities, and harming livelihoods. The relief included in this legislation will ensure the IRS is not adding insult to injury. It is another strong, bipartisan effort by the Ways and Means Committee and this Congress to do right by American taxpayers. That is why the bill received unanimous approval by the Ways and Means Committee. I urge all my colleagues to do the same and support this legislation. Mr. Speaker, I yield back the balance of my time.”
Official Congressional Record
Mr. Speaker, I yield myself the balance of my time. Mr. Speaker, we know that bad actors and fraudsters prey on Americans every day by stealing money, identities, and harming livelihoods. The relief included in this legislation will ensure the IRS is not adding insult to injury. It is another strong, bipartisan effort by the Ways and Means Committee and this Congress to do right by American taxpayers. That is why the bill received unanimous approval by the Ways and Means Committee. I urge all my colleagues to do the same and support this legislation. Mr. Speaker, I yield back the balance of my time.
