Tax Relief for Disaster Losses and Fraud Victims
This bill would help people get tax relief for property losses from unexpected events like storms. It would also help those who are victims of theft caused by fraud. The bill removes the requirement for a disaster declaration to deduct personal casualty losses. It also gives fraud victims more time and choices to claim tax benefits, including for retirement funds. These changes would generally start after December 31, 2025.
Today, there are limits on how much you can deduct for personal casualty losses, including a requirement for a federally declared disaster. You also generally claim theft losses when you discover them. This bill would remove the federally declared disaster requirement for personal casualty losses. It would also give victims of fraud-related theft more flexibility in when they claim losses and more time to file for refunds. It would also remove the 10% penalty for early retirement withdrawals made due to fraud-related theft.
HR 6999 · 119th Congress · January 9, 2026 · AI Summary by gemini-2.5-flash · 7/10
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