U.S. Representative Greg Steube (R-Fla.) and Senator Ashley Moody (R-Fla.) have introduced the “Tax Relief for Victims of Crimes, Scams, and Disasters Act,” a bill aimed at reinstating the casualty and theft loss tax deduction for Americans who have suffered significant losses due to fraud, cybercrime, structural home failures, or natural disasters.
The legislation seeks to reverse current tax law, which limits casualty and theft loss deductions to losses incurred within federally declared disaster areas. Prior to recent changes, taxpayers could deduct losses on assets they no longer possessed, providing vital relief after devastating events.
READ: Wisconsin Judge Pleads Not Guilty To Federal Charges Of Aiding Illegal Immigrant
The newly proposed act would restore this broader deduction and apply it retroactively for tax years 2018 through 2024, providing much-needed financial relief for victims of theft, fraud, and other calamities.
“Hardworking Americans, especially seniors, who fall victim to scams, cybercrime, or disasters should not be forced to pay taxes on income they no longer have,” said Rep. Steube. “Victims of crime, calamity, and fraud deserve peace of mind as they work to regain their footing. This bill protects Americans who have lost everything by restoring fairness and common sense to the tax code.”
“As hurricane season is around the corner, I will continue supporting policies that protect Floridians from scammers and fraudsters,” said Senator Moody. “My Tax Relief for Victims of Crimes, Scams and Disasters Act will provide commonsense tax relief for victims, often seniors, who have been financially devastated by scams, crimes, or destruction from disasters. This legislation will help folks get back on their feet when they experience hardship.”
READ: Senate GOP Races Ahead With Trump Confirmations Despite Historic Roadblocks From Dems
The bill addresses policy recommendations from National Taxpayer Advocate Erin M. Collins, who served during the Trump Administration.
The act has garnered support from a wide range of organizations, including the AARP, AICPA-CIMA, AMAC Action, American Land Title Association, CFP Board, The Elder Justice Coalition, Family Business Coalition, Financial Services Institute, Investment Advisers Association, the National Association of Consumer Advocates, National Association of Enrolled Agents, National Association of Realtors, Operation Shamrock, and the National Association of Government Defined Contribution Administrators (NAGDCA).
Palmer Schoening, Chairman of the Family Business Coalition, stated, “Family-owned businesses are built over generations, and when they fall victim to scams, disasters, or structural failures, the impact is devastating. Congressman Steube’s Tax Relief for Victims of Crimes, Scams, and Disasters Act restores a vital protection in the tax code that ensures these families aren’t taxed on income they’ve lost through no fault of their own. This is a common-sense targeted fix that reflects the realities family businesses face today.”
This legislation builds on previous efforts by Rep. Steube and Sen. Moody to support victims of natural disasters and scams.
Rep. Steube’s bipartisan Federal Disaster Tax Relief Act was previously signed into law, providing tax relief for disaster victims across 48 states from 2021 to 2025. Sen. Moody, during her tenure as Florida Attorney General, also actively combated cybercrime targeting seniors.
Please make a small donation to the Tampa Free Press to help sustain independent journalism. Your contribution enables us to continue delivering high-quality, local, and national news coverage.
Connect with us: Follow the Tampa Free Press on Facebook and Twitter for breaking news and updates.
Sign up: Subscribe to our free newsletter for a curated selection of top stories delivered straight to your inbox.
