House passes Tax Relief for Fraud Victims Act, 408–17, sending scam-victim tax break to Senate
The House passed the Tax Relief for Fraud Victims Act on September 15, 2026, by a vote of 408 to 17, clearing the tax measure under a fast-track procedure and sending it to the Senate.
The bill, H.R. 9500, would ease federal taxes for people who lose money to fraud, scams, and theft. Under the measure, taxpayers could deduct personal casualty and theft losses without the current requirement that such losses be tied to a federally or state-declared disaster. It would also let victims of theft involving fraud, deceit, or misrepresentation claim the deduction in the year the loss occurred rather than the year it was discovered, and it would extend the deadline for filing related refund claims to at least one year after a loss is discovered.
The bill also addresses retirement savings. For people who took early withdrawals from a retirement plan because of a fraud-related theft loss, it would waive the usual 10 percent early-withdrawal penalty, extend the deadline to claim a refund, and give victims one year after discovering the loss to repay the withdrawn money.
The legislation was introduced by Rep. Max L. Miller (R-Ohio), along with Rep. Tom Suozzi (D-N.Y.). During floor debate, Rep. Miller said current law generally bars scam victims from deducting their losses unless the losses are connected to a declared disaster, and he said the bill would restore that deduction, give victims more time to claim refunds, and lift penalties on retirement funds taken by scammers. Rep. Suozzi said the bill had passed the Ways and Means Committee with unanimous support under Chairman Jason Smith (R-Mo.) and Ranking Member Richard Neal (D-Mass.). Members of both parties spoke in favor of the measure.
The House took up the bill under a suspension of the rules, a procedure reserved for measures with broad support that limits debate and bars amendments but requires a two-thirds majority to pass. With House passage, the bill now moves to the Senate for consideration.
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