Press Releases

WASHINGTON, DC—Today, Representatives Jim McGovern (MA-02) and Jamie Raskin (MD-08) introduced the Tax Relief for Victims of Crimes, Scams, and Disasters Act, legislation to reinstate a tax deduction previously available to victims of scams, thefts, accidents and other personal casualty losses. After the 2017 Trump tax cuts repealed a critical tax deduction previously available to taxpayers suffering personal casualty losses, reporting has revealed a pattern of devastated Americans saddled with exorbitant tax liabilities after losing money through scams, frauds, thefts and similar adverse events.

The Trump tax law also repealed deductions for those suffering losses from unexpected disasters, including the growing number of Massachusetts homeowners realizing the cement in their home contains pyrrhotite, causing their foundation to crumble beneath them.

“Crumbling foundations have caused massive financial and emotional burden for homeowners across Central and Western Massachusetts,” said Rep. McGovern. “I’ve visited many homes where families were suddenly left with exorbitant costs to ensure their home is safe. This legislation would provide immediate tax relief for these homeowners, as well as victims of scams and others suffering losses at no fault of their own.”

Reps. McGovern and Raskin’s bill would bring relief to taxpayers experiencing hardships by reinstating the tax deduction for personal casualty losses that was available prior to the 2017 Tax Cuts and Jobs Act. Crucially, the bill would allow victims who suffered losses after passage of the 2017 Trump tax law to claim the deduction on prior year’s taxes.

The bill text can be found in full here.