Tax Relief for Victims of Crimes, Scams, and Disasters Act
- Bill Number
- H.R. 3469
- Origin Chamber
- House
- Congress
- 119th Congress, Session 1
- Policy Area
- Taxation
- Status
- Introduced
- Latest Action
- 2025-05-15: Referred to the House Committee on Ways and Means.
- Last Updated
- 2026-06-30T08:07:16Z
AI-Generated Summary
Purpose
This legislation aims to restore a tax deduction for individuals who suffer personal casualty losses—such as damage from theft, scams, accidents, or disasters—allowing them to reduce their taxable income by the amount of these losses. It reverses a prior restriction that limited such deductions to only federally declared disasters, providing relief to victims who were previously ineligible.
Key Provisions
- Reinstatement of Deduction: Amends Section 165(h) of the Internal Revenue Code (IRC) by removing the paragraph that suspended deductions for personal casualty losses unless they occurred in a federally declared disaster area. This restores the pre-2018 rules, where losses from any sudden, unexpected events (e.g., theft or vandalism) could be deducted if they exceeded 10% of adjusted gross income and $100 per event.
- Effective Date: Applies to tax years beginning after December 31, 2017, making the change retroactive.
- Extended Refund Window: For tax returns filed before January 1, 2025, where the deduction was unavailable due to the prior suspension:
- Extends the deadline to file a claim for a tax refund or credit until the due date (including extensions) for filing the tax return in the year this law is enacted.
- Waives the usual three-year limit on refunds from the date of tax payment, but only for claims tied to these casualty loss deductions.
Significant Changes to Existing Law
- Reverses a key provision of the 2017 Tax Cuts and Jobs Act (Public Law 115-97), which had suspended personal casualty loss deductions for non-disaster events starting in 2018, effectively eliminating tax relief for many common losses like home burglaries or vehicle accidents outside disaster zones.
- Introduces a targeted extension of the statute of limitations (the time limit for filing refund claims under IRC Section 6511), allowing retroactive access to deductions that taxpayers couldn't previously claim.
Potential Impacts
- On Citizens: Provides financial relief to individuals and families affected by crimes, scams, or non-disaster casualties by enabling tax deductions and potential refunds for past years, potentially reducing their tax burden by thousands of dollars depending on the loss amount.
- On Government Agencies: Increases workload for the Internal Revenue Service (IRS) in processing amended returns and refund claims, which could lead to short-term administrative costs and a temporary dip in federal tax revenue.
- On International Relations: No direct impact, as this is a domestic tax policy change.
Main Stakeholders Affected
- Taxpayers: Primarily individuals who experienced personal casualty losses since 2018, including victims of theft, fraud, scams, or property damage not tied to federal disasters; this could benefit lower- and middle-income households disproportionately affected by such events.
- Internal Revenue Service (IRS): Responsible for implementing the changes, reviewing claims, and issuing refunds.
- Advocacy Groups and Lawmakers: Organizations supporting crime victims or disaster relief, as well as bipartisan congressional sponsors (e.g., Representatives Steube, Panetta, and others), who may advocate for broader tax equity.
Notable Legal, Constitutional, or Political Implications
- Legal: The retroactive application and extension of refund deadlines could invite challenges under tax law principles, but the bill explicitly limits it to casualty losses to avoid broader disruptions. It upholds equal protection by restoring deductions uniformly without favoring specific groups.
- Constitutional: No apparent conflicts with constitutional provisions, as it involves Congress's authority to regulate taxation under Article I.
- Political: Demonstrates bipartisan support (cosponsored by Republicans and Democrats), signaling potential for passage in a divided Congress; it addresses public concerns over tax fairness for everyday victims but may face opposition over revenue costs estimated in the billions if widely claimed.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Rep. Steube, W. Gregory [R-FL-17]
Cosponsors (43)
Rep. Panetta, Jimmy [D-CA-19], Rep. Diaz-Balart, Mario [R-FL-26], Rep. Ezell, Mike [R-MS-4], Rep. Raskin, Jamie [D-MD-8], Rep. McGovern, James P. [D-MA-2], Rep. Lee, Laurel M. [R-FL-15], Rep. Pettersen, Brittany [D-CO-7], Rep. Kiley, Kevin [R-CA-3], Rep. Beatty, Joyce [D-OH-3], Rep. Nunn, Zachary [R-IA-3], Rep. Balint, Becca [D-VT-At Large], Rep. Gill, Brandon [R-TX-26], Rep. McClain Delaney, April [D-MD-6], Rep. Shreve, Jefferson [R-IN-6], Rep. Titus, Dina [D-NV-1], Rep. Houchin, Erin [R-IN-9], Rep. Trahan, Lori [D-MA-3], Rep. Weber, Randy K. Sr. [R-TX-14], Rep. Amo, Gabe [D-RI-1], Rep. Lawler, Michael [R-NY-17], Rep. Vindman, Eugene Simon [D-VA-7], Rep. Salazar, Maria Elvira [R-FL-27], Rep. McBride, Sarah [D-DE-At Large], Rep. Wied, Tony [R-WI-8], Rep. Min, Dave [D-CA-47], Rep. Fine, Randy [R-FL-6], Rep. Riley, Josh [D-NY-19], Rep. Mace, Nancy [R-SC-1], Rep. McDonald Rivet, Kristen [D-MI-8], Rep. McDowell, Addison P. [R-NC-6], Rep. Ross, Deborah K. [D-NC-2], Rep. Smith, Adam [D-WA-9], Rep. Van Drew, Jefferson [R-NJ-2], Rep. Vargas, Juan [D-CA-52], Rep. Kiggans, Jennifer A. [R-VA-2], Rep. Westerman, Bruce [R-AR-4], Rep. Subramanyam, Suhas [D-VA-10], Rep. Kim, Young [R-CA-40], Rep. Whitesides, George [D-CA-27], Rep. Pappas, Chris [D-NH-1], Rep. Moore, Blake D. [R-UT-1], Rep. Smith, Christopher H. [R-NJ-4], Rep. Vasquez, Gabe [D-NM-2]
Recent Actions
- 2025-05-15: Referred to the House Committee on Ways and Means.
- 2025-05-15: Introduced in House
- 2025-05-15: Introduced in House
Bill Versions
- Tax Relief for Victims of Crimes, Scams, and Disasters Act — issued 2025-05-15 — PDF (3 pages)