S. 1773

119 S1773 IS: Tax Relief for Victims of Crimes, Scams, and Disasters Act
 U.S. Senate
 2025-05-15
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  II
  119th CONGRESS
  1st Session
  S. 1773
  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.
1.
Short title
This Act may be cited as the   Tax Relief for Victims of Crimes, Scams, and Disasters Act  .
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.
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.