Tax Relief for Fraud Victims Act repeals personal casualty loss deduction limits and extends credit or refund claims for theft losses involving fraud.

The Tax Relief for Fraud Victims Act amends the Internal Revenue Code to repeal the limitation on deductions for personal casualty losses. It also provides increased taxpayer relief for theft losses involving fraud, deceit, or misrepresentation. The bill extends the period of limitation for credit or refund claims for such theft losses, allowing taxpayers to treat these losses as sustained during the taxable year in which they occur. The changes apply to losses sustained in taxable years beginning after December 31, 2025.

Tax Relief for Fraud Victims Act repeals personal casualty loss deduction limits and extends credit or refund claims for theft losses involving fraud.

The Tax Relief for Fraud Victims Act amends the Internal Revenue Code to repeal the limitation on deductions for personal casualty losses. It also provides increased taxpayer relief for theft losses involving fraud, deceit, or misrepresentation. The bill extends the period of limitation for credit or refund claims for such theft losses, allowing taxpayers to treat these losses as sustained during the taxable year in which they occur. The changes apply to losses sustained in taxable years beginning after December 31, 2025.