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

Summary

Repeals a rule that limited individual personal casualty and theft loss deductions and restores availability of those deductions for tax years beginning after December 31, 2017. It also gives certain taxpayers extra time to file refund or credit claims tied to casualty losses that were previously suspended when they filed their returns. The bill applies only to personal casualty loss deductions under the individual-loss rules and creates a temporary, limited extension of the normal refund-claim period for returns filed for tax years ending before January 1, 2025. It also prevents one statutory time-bar provision from blocking those extended claims.

• Deletes paragraph (5) of 26 U.S.C. §165(h), restoring certain individual personal casualty and theft loss deductions for taxable years beginning after Dec 31, 2017.
• Gives eligible taxpayers extra time to file refund or credit claims tied to casualty-loss deductions that were suspended when their returns were filed.
• The extended claim window applies only to returns for tax years ending before Jan 1, 2025 and only to claims attributable to §165(c)(3) personal casualty losses.
• The bill suspends application of §6511(b)(2) for those specific refund claims and extends §6511(a) until the due date (including extensions) of the return for the taxable year that includes enactment.
• Impacts individual taxpayers (not corporations) who experienced personal casualty or theft losses — e.g., victims of disasters, thefts, or certain scams involving personal property.
• May increase IRS workload and could reduce Treasury receipts to the extent refunds are allowed or deductions reduce taxable income.
• Does not create new spending programs, earmarks, or emergency-designated appropriations.
• Relief is limited by the statute's definitions and only applies to losses that qualify under the personal casualty-loss rules.