S. 3976 — Introduced in Senate

II 118th CONGRESS 2d Session S. 3976 IN THE SENATE OF THE UNITED STATES March 19, 2024Ms. Baldwin (for herself 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 (commonly referred to as the Tax Cuts and Jobs Act). 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 amended return window for personal casualty loss (a) In general In the case of a taxpayer who filed a return for a taxable year ending before January 1, 2022, with respect to which a deduction could have been taken by the taxpayer under section 165(h) of the Internal Revenue Code of 1986 but for the fact that such deduction was suspended at the time of filing— (1) the period of limitation prescribed by section 6511(a) of such Code 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 casualty loss deduction Subsection (a) shall apply only with respect to amendments to the return of tax and claims for credit or refund of a taxpayer to the extent such amendments or claims relate to the deduction for casualty losses under section 165(h) of the Internal Revenue Code of 1986.