CFP Board Urges Senate to Pass Fraud Victims Tax Bill
The Certified Financial Planner Board joined a 52-member coalition asking the Senate to advance H.R. 9500 before year's end.
Updated on Nov. 13, 2026 in Financial Planning
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The Certified Financial Planner Board of Standards joined a 52-member coalition urging Senate action on H.R. 9500, the Tax Relief for Fraud Victims Act, which passed the House 408-17 in September 2026. The coalition wrote to Senate Finance Committee Chairman Mike Crapo and ranking member Ron Wyden.
Why it matters
Under current law, individuals can generally deduct personal casualty and theft losses only when tied to a federally or state-declared disaster, leaving many fraud victims without relief. Fraud victims face an additional tax burden as they work to rebuild their financial security.
Adults 60 and older reported about $3 billion in fraud losses to the Federal Trade Commission in 2025, five times the 2020 level, and the FTC estimates the real cost of elder fraud could reach $119.5 billion. Whether the Senate will advance the bill before year's end has not been determined.
The players
Certified Financial Planner Board of Standards
The CFP Board is a nonprofit that sets certification and ethics standards for financial planners in the United States.
Mike Crapo
Crapo is the Republican senator from Idaho who chairs the Senate Finance Committee.
Ron Wyden
Wyden is the Democratic senator from Oregon who serves as ranking member of the Senate Finance Committee.
The details
H.R. 9500 would lift the restriction that limits theft-loss deductions to disaster-declared events. In its House-passed form, victims could deduct losses above 10% of adjusted gross income in the year the fraud occurred or was discovered, with relief reaching back to losses incurred after Dec. 31, 2020.
Timeline
September 2026: The House passed H.R. 9500 by a 408-17 vote after the Ways and Means Committee cleared it without opposition.
Dec. 31, 2020: Relief under the bill reaches back to losses incurred after this date.
2025: Adults 60 and older reported about $3 billion in fraud losses to the FTC.
Before the end of the year: The coalition urged the Senate to act.
Financial Planning Context
The bill would extend the theft-loss deduction beyond the disaster-declaration rule that has governed personal casualty losses, creating a separate path for fraud victims. The proposal arrives as older Americans' investment scam losses rose 42% in 2025 to more than $1 billion.
If enacted, the bill would let fraud victims deduct losses above 10% of adjusted gross income without a disaster declaration. Victims would need to track fraud losses carefully to claim the deduction in the year the fraud occurred or was discovered.
The takeaway
Fraud losses can create a tax burden on top of financial damage, so keeping records of stolen funds may matter if relief legislation passes. Monitoring the bill's Senate progress can help you understand whether new deductions could apply to you.
What happens next
The Senate Finance Committee has yet to schedule action on H.R. 9500, and the coalition has asked for passage before the end of the year.
Further reading
Explore more on financial planning strategies for protecting savings from scams and tax surprises.
Source note: This article includes information reported by InvestmentNews.
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