H.R.3469 - Tax Relief for Victims of Crimes, Scams, and Disasters Act (119th Congress)
Summary
H.R.3469, the "Tax Relief for Victims of Crimes, Scams, and Disasters Act," aims to reinstate the deduction for personal casualty losses as it existed before the enactment of Public Law 115-97. This bill amends the Internal Revenue Code of 1986 to allow taxpayers to deduct losses from crimes, scams, and disasters. It also extends the time for taxpayers to file claims for credit or refund related to these casualty losses for taxable years ending before January 1, 2025.
Expected Effects
The bill's passage would allow individuals who have experienced losses due to crimes, scams, or disasters to deduct these losses from their taxable income, potentially reducing their tax burden. Additionally, it provides a window for taxpayers who previously missed the opportunity to claim these deductions to file for a refund. This could provide financial relief to those affected by unforeseen events.
Potential Benefits
- Provides tax relief to victims of crimes, scams, and disasters.
- Allows deductions for personal casualty losses, reducing the tax burden on affected individuals.
- Extends the time frame for filing claims, giving taxpayers more opportunity to receive refunds.
- Could stimulate local economies in areas affected by disasters, as individuals have more disposable income.
- Offers financial assistance to those who have experienced significant personal losses.
Potential Disadvantages
- May increase complexity in tax filing for individuals who need to document and claim these losses.
- Could potentially lead to increased government spending due to refunds and reduced tax revenue.
- The benefits may disproportionately favor those who itemize deductions, potentially excluding lower-income individuals who take the standard deduction.
- Potential for fraudulent claims, requiring increased oversight and enforcement by the IRS.
- The overall economic impact may be limited, as it primarily affects individuals who have already experienced a loss.
Most Disadvantaged Areas:
Constitutional Alignment
The bill aligns with the general welfare clause of the Constitution, as it aims to provide relief to citizens affected by unforeseen events. Specifically, the Preamble states the goal to "promote the general Welfare." Article I, Section 8, Clause 1 grants Congress the power to lay and collect taxes, duties, imposts, and excises, to pay the debts and provide for the common defense and general welfare of the United States. This bill falls under Congress's power to enact tax laws that aim to provide relief to citizens in need.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).