Tax Relief for Fraud Victims Act repeals the limitation on personal casualty loss deductions and extends the period for claiming refunds for theft.

The Tax Relief for Fraud Victims Act amends the Internal Revenue Code to eliminate the cap on personal casualty loss deductions. It also provides increased taxpayer relief for theft losses involving fraud, deceit, or misrepresentation by allowing taxpayers to choose the taxable year in which to claim such losses. The bill extends the period for filing credit or refund claims for these theft losses and applies specific rules for distributions related to such losses. The changes apply to losses sustained after December 31, 2025, and to distributions made after the same date.

Tax Relief for Fraud Victims Act repeals the limitation on personal casualty loss deductions and extends the period for claiming refunds for theft.

The Tax Relief for Fraud Victims Act amends the Internal Revenue Code to eliminate the cap on personal casualty loss deductions. It also provides increased taxpayer relief for theft losses involving fraud, deceit, or misrepresentation by allowing taxpayers to choose the taxable year in which to claim such losses. The bill extends the period for filing credit or refund claims for these theft losses and applies specific rules for distributions related to such losses. The changes apply to losses sustained after December 31, 2025, and to distributions made after the same date.