WHAT THE LAW DOINCongress, in plain words

H.R. 9500 · 119th Congress

Tax Relief for Fraud Victims Act

Passed HouseTaxation
IntroducedJun 29, 2026
Passed HouseSep 15, 2026
Passed SenateNot yet
To PresidentNot yet
Became lawNot yet

Where it stands

Passed House. Latest step, Sep 16, 2026: Received in the Senate and Read twice and referred to the Committee on Finance. The House passed it 408–17. All 4 of Iowa's representatives voted yes in the House. It would change 1 section of existing law.

How this bill changes the law

Sourced

H.R. 9500 would change 1 section of existing law. Read from the bill text as sent to the Senate (Sep 16, 2026).

26 U.S.C. 165

What the words would change: every change, in place (1)

Today's wording of each part of the law, with what would be struck out and added. Each change also gives the bill's own instruction, word for word.

  1. 26 U.S.C. 165(h)a new sectionremovedby H.R. 9500 Sec. 2(a)

    The bill says: Section 165(h) of the Internal Revenue Code of 1986 is amended by striking paragraph (5).

    Bill text

From the bill's official text on GovInfo and the U.S. Code, latest edition, which may not yet show changes made since.

What it does

Sourced

Tax Relief for Fraud Victims Act

This bill expands the federal tax deduction for personal casualty and theft losses by eliminating certain limits, including the requirement that such losses arise from certain disasters. The bill also extends the tax refund deadline and modifies certain retirement plan rules related to certain fraud losses.

The bill repeals the limit on the federal tax deduction for personal casualty losses (not attributable to a trade, business, or transaction entered into for profit) that allows such losses only if arising from a federal or state declared disaster or to the extent that such losses offset personal casualty gains.

The bill allows taxpayers to elect to claim a tax deduction for losses arising from a theft involving fraud, deceit, or misrepresentation in the tax year such losses occur (rather than in the tax year discovered). Further, the bill extends the deadline for a refund claim related to a tax deduction for such losses to no less than one year after the date on which the losses are discovered and eliminates certain restrictions on the amount of such refund.

Read the whole official summary (253 words, about 1 min)

For early distributions from a qualified retirement plan arising from a theft loss involving fraud, deceit, or misrepresentation for which a tax deduction is allowed, the bill

• waives the 10% penalty,

• extends the deadline for filing a refund claim and eliminates certain restrictions on the amount of such refund, and

• allows one year (beginning on the day after the theft loss is discovered) to repay such early distributions.

Official summary by the Congressional Research Service (Introduced in House, Jun 29, 2026).

Our plain-language breakdown, with what it means for you and the case for and against, is written once a bill starts to move.

What has happened

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  1. Sep 15, 2026Passed/agreed to in House: On motion to suspend the rules and pass the bill, as amended Agreed to by the Yeas and Nays: (2/3 required): 408 - 17 (Roll no. 305). Roll call recordLibrary of Congress
  2. Jun 29, 2026Introduced in HouseLibrary of Congress

Show all 14 recorded actions

Recorded votes

Sourced
  1. Sep 15, 2026 · HousePassed 408–17
    Iowa: Randy Feenstra yes, Ashley Hinson yes, Mariannette Miller-Meeks yes, Zachary Nunn yes
    On Motion to Suspend the Rules and Pass, as Amended · needed two-thirds
    R 195 yes, 17 noI 1 yes, 0 noD 212 yes, 0 noEach member · Record

Cosponsors

  • Vern Buchanan R-FL-16
  • Thomas R. Suozzi D-NY-3