Tax Relief for Victims of Crimes, Scams, and Disasters Act

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 1773 Introduced in Senate (IS)]

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119th CONGRESS
  1st Session
                                S. 1773

 To amend the Internal Revenue Code of 1986 to reinstate the deduction 
  for personal casualty losses as in effect prior to the enactment of 
                           Public Law 115-97.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              May 15, 2025

  Ms. Baldwin (for herself, Mrs. Moody, and Mr. Welch) introduced the 
 following bill; which was read twice and referred to the Committee on 
                                Finance

_______________________________________________________________________

                                 A BILL


 
 To amend the Internal Revenue Code of 1986 to reinstate the deduction 
  for personal casualty losses as in effect prior to the enactment of 
                           Public Law 115-97.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Tax Relief for Victims of Crimes, 
Scams, and Disasters Act''.

SEC. 2. REINSTATEMENT OF DEDUCTION FOR PERSONAL CASUALTY LOSS.

    (a) In General.--Section 165(h) of the Internal Revenue Code of 
1986 is amended by striking paragraph (5).
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2017.

SEC. 3. EXTENSION OF TIME TO FILE CLAIM FOR CREDIT OR REFUND FOR 
              PERSONAL CASUALTY LOSS DEDUCTION.

    (a) In General.--In the case of a taxpayer who filed a return for a 
taxable year ending before January 1, 2025, with respect to which a 
deduction could have been taken by the taxpayer under section 165(a) of 
the Internal Revenue Code of 1986 but for the fact that such deduction 
was suspended under section 165(h)(5) at the time of filing--
            (1) the period of limitation prescribed by section 6511(a) 
        of such Code on filing a claim for credit or refund for any 
        such taxable year shall be extended until the date prescribed 
        by law (including extensions) for filing the return of tax for 
        the taxable year that includes the date of the enactment of 
        this Act, and
            (2) section 6511(b)(2) of such Code shall not apply to any 
        claim of credit or refund with respect to such return.
    (b) Extension Restricted to Personal Casualty Loss Deduction.--
Subsection (a) shall apply only with respect to a claim for credit or 
refund of a taxpayer to the extent such claim relates to an overpayment 
attributable to the deduction under section 165(a) for personal 
casualty losses described in section 165(c)(3) of the Internal Revenue 
Code of 1986.
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