House of Representatives ·
Tax Relief for Fraud Victims Act
“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.”
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.