H.R. 9500, 119th Cong., 2d Sess. (2026), passed the House of Representatives on September 15, 2026
On September 15, 2026, the United States House of Representatives passed H.R. 9500, titled the “Tax Relief for Fraud Victims Act”. Introduced by Representative Max Miller (OH) alongside Representative Thomas Suozzi (NY), the proposed legislation enacts substantive modifications to Title 26 of the United States Code (Internal Revenue Code of 1986). The bill addresses long-standing practitioner concerns regarding the restrictive personal casualty loss rules imposed under the Tax Cuts and Jobs Act (TCJA) of 2017, while instituting unprecedented relief, elections, and extended refund statutes for taxpayers who suffer theft losses stemming from fraud, deceit, or misrepresentation.
Legislative Status Note: Tax practitioners must advise clients that while H.R. 9500 has passed the House of…
Investment fraud targets the human desire for financial growth by promising high returns with “low to no risk.”
- Ponzi Schemes: Named after Charles Ponzi, these schemes pay “returns” to earlier investors using the capital brought in by newer investors. There is no actual underlying business; the system collapses when new recruitment slows down.
- Pyramid Schemes: Similar to Ponzi schemes, but participants are usually required to sell a product or service. The primary “profit” comes from the recruitment fees of new members rather than actual product sales.
- Pump and Dump: Fraudsters spread false, positive rumors about a cheap stock (the “pump”) to drive up the price. Once the price peaks, they sell their shares (the “dump”), leaving other investors with worthless stock.