#aai? ,,congress  #b;d ,session  ,h4 ,r4
 #iejj  ,,an ,,act  ,to am5d ! ,int]nal 
,rev5ue ,code ( #aihf to repeal !       
limitation on d$uctions = p]sonal       
casualty losses & to provide = increas$ 
taxpay] relief ) respect to !ft losses  
involv+ fraud1 deceit1 or               
misrepres5tation4  #a4 ,%ort title ,?is 
,act may be cit$ z ! ,tax ,relief =     
,fraud ,victims ,act4  #b4 ,repeal (    
limitation on d$uctions = p]sonal       
casualty losses2 increas$ taxpay] relief
 ) respect to c]ta9 !ft losses  7a7     
,repeal ( limitation on d$uctions =     
p]sonal casualty losses ,section        
#afe7;h7 ( ! ,int]nal ,rev5ue ,code (   
#aihf is am5d$ by /rik+ p>agraph 7#e74  
7b7 ,c]ta9 !ft losses su/a9$ dur+       
taxable ye> ( *oice2 ext5sion ( p]iod ( 
limitation = cr$it or refund claims =   
c]ta9 !ft losses  7#a7 ,c]ta9 !ft losses
 su/a9$ dur+ taxable ye> ( *oice        
,section #afe7;e7 ( su* ,code is am5d$  
to read z foll[s3  7e7 ,!ft losses ,=   
purposes ( subsection 7a7--  7#a7 ,9    

g5]al ,except z provid$ 9 p>agraph 7#b71
 any loss aris+ f !ft %all be treat$ z  
su/a9$ dur+ ! taxable ye> 9 :i* !       
taxpay] discov]s su* loss4  7#b7 ,!ft   
losses involv+ fraud1 deceit1 or        
misrepres5tation ,9 ! case ( any loss   
aris+ f !ft involv+ fraud1 deceit1 or   
misrepres5tation 7z def9$ by !          
,secret>y71 ! taxpay] may elect to treat
 su* loss z su/a9$ dur+ ! taxable ye> 9 
:i* su* loss occurs4  4  7#b7 ,ext5sion 
( p]iod ( limitation = cr$it or refund  
claims = c]ta9 !ft losses ,section      
#afe7;h77#d7 ( su* ,code is am5d$ by    
add+ at ! end ! foll[+ new subp>agraph3 
7,f7 ,p]iod ( limitation = cr$it or     
refund claims = !ft losses involv+      
fraud1 deceit1 or misrepres5tation ,9 ! 
case ( a claim = cr$it or refund )      
respect to a d$uction all[$ "u          
subsection 7a7 = any loss aris+ f !ft   
involv+ fraud1 deceit1 or               
misrepres5tation--  7i7 ! p]iod (       
limitation prescrib$ by section         
#feaa7;a7 = ! fil+ ( su* claim %all be  

treat$ z n expir+ e>li] ?an ! date t is 
#a ye> aft] ! date on :i* ! taxpay]     
discov]s su* loss1 &  7ii7 section      
#feaa7;b77#b7 %all n apply ) respect to 
! fil+ ( su* claim4  4  7c7             
,di/ributions relat+ to !ft losses      
involv+ fraud1 deceit1 or               
misrepres5tation ,section #gb7t77#b7 (  
su* ,code is am5d$ by add+ at ! end !   
foll[+ new subp>agraph3  7,o7           
,di/ributions relat+ to !ft losses      
involv+ fraud1 deceit1 or               
misrepres5tation  7i7 ,9 g5]al ,any     
di/ribution to ! ext5t x relates to any 
loss aris+ f !ft involv+ fraud1 deceit1 
or misrepres5tation = :i* a d$uction is 
all[$ "u section #afe7;a74  7ii7 ,am\nt 
di/ribut$ may be repaid ,rules simil> to
 ! rules ( subp>agraph 7,h77v7 %all     
apply ) respect to an individual :o     
receives a di/ribution to :i* clause 7i7
 applies1 except t subp>agraph          
7,h77v77,i7 %all be appli$ by sub/itut+ 
#a-ye> p]iod beg9n+ on ! day aft] ! date
 on :i* ! taxpay] discov]s ! loss       

describ$ 9 subp>agraph 7,o77i7 = #c-ye> 
p]iod beg9n+ on ! day aft] ! date on :i*
 su* di/ribution 0 receiv$4  7iii7      
,p]iod ( limitation = cr$it or refund   
claims ,9 ! case ( a claim = cr$it or   
refund ( ! tax impos$ by p>agraph 7#a7 )
 respect to a di/ribution describ$ 9    
clause 7i7--  7,i7 ! p]iod ( limitation 
prescrib$ by section #feaa7;a7 = ! fil+ 
( su* claim %all be treat$ z n expir+   
e>li] ?an ! date t is #a ye> aft] ! date
 on :i* ! taxpay] discov]s ! loss       
describ$ 9 clause 7i71 &  7,,ii7 section
 #feaa7;b77#b7 %all n apply ) respect to
 ! fil+ ( su* claim4  4  7d7 ,cross     
ref]5ce ,section #feaa7;i7 ( su* ,code  
is am5d$ by add+ at ! end ! foll[+ new  
p>agraph3  7#h7 ,= a p]iod ( limitations
 = cr$it or refund 9 ! case ( !ft losses
 involv+ fraud1 deceit1 or              
misrepres5tation1 see sections          
#gb7t77#b77,o77iii7 & #afe7;h77#d77;,f74
  4  7e7 ,claim process+ deadl9e ,9 !   
case ( a claim = cr$it or refund )      
respect to a d$uction all[$ "u section  

#afe7;a7 ( su* ,code = any specifi$     
p]sonal casualty loss 7z def9$ 9        
subsection 7f77#e77 or ) respect to any 
di/ribution describ$ 9 section          
#gb7t77#b77,o77i7 ( su* ,code 7z add$ by
 ?is section71 ! ,secret>y ( ! ,treasury
 7or ! ,secret>y's delegate7 %all       
process su* claim n lat] ?an #b ye>s    
aft] ! date on :i* su* claim is fil$4   
7f7 ,effective dates  7#a7 ,9 g5]al     
,except z o!rwise provid$ 9 ?is         
subsection1 ! am5dm5ts made by ?is      
section %all apply to losses su/a9$ 9   
taxable ye>s beg9n+ aft] ,decemb] #ca1  
#bjbe4  7#b7 ,specifi$ p]sonal casualty 
losses ,9 ! case ( any specifi$ p]sonal 
casualty loss1 p>agraph 7#a7 %all be    
appli$ by sub/itut+ ,decemb] #ca1 #bjbj 
= ,decemb] #ca1 #bjbe4  7#c7            
,di/ributions relat+ to !ft losses      
involv+ fraud1 deceit1 or               
misrepres5tation ,! am5dm5t made by     
subsection 7c7 %all apply to            
di/ributions made aft] ,decemb] #ca1    
#bjbj4  7#d7 ,ext5sion ( p]iod (        

limitation = cr$it or refund claims =   
specifi$ p]sonal casualty losses  7,a7  
,fraud-relat$ p]sonal casualty losses ,9
 ! case ( any fraud-relat$ p]sonal      
casualty loss1 if ! taxpay] discov]s su*
 loss be=e ! date ( ! enactm5t ( ?is    
section-- 7i7 section                   
#afe7;h77#d77;,f77i7 ( ! ,int]nal       
,rev5ue ,code ( #aihf 7z add$ by ?is    
section7 %all be appli$ by sub/itut+ !  
date ( ! enactm5t ( ?is subp>agraph = ! 
date on :i* ! taxpay] discov]s su* loss1
 &  7ii7 section #gb7t77#b77,o77iii77,i7
 ( su* ,code 7z add$ by ?is section7    
%all be appli$ by sub/itut+ ! date ( !  
enactm5t ( ?is subp>agraph = ! date on  
:i* ! taxpay] discov]s ! loss describ$ 9
 clause 7i74  7,b7 ,pyrrhotite-relat$   
p]sonal casualty losses ,9 ! case ( a   
claim = cr$it or refund ) respect to a  
d$uction all[$ "u section #afe7;a7 ( !  
,int]nal ,rev5ue ,code ( #aihf = any    
pyrrhotite-relat$ p]sonal casualty      
loss--  7i7 ! p]iod ( limitation        
prescrib$ by section #feaa7;a7 ( su*    

,code = ! fil+ ( su* claim %all be      
treat$ z n expir+ e>li] ?an ! date t is 
#a ye> aft] ! date ( ! enactm5t ( ?is   
section1 &  7ii7 section #feaa7;b77#b7 (
 su* ,code %all n apply ) respect to !  
fil+ ( su* claim4  7#e7 ,specifi$       
p]sonal casualty loss ,= purposes ( ?is 
subsection-- 7,a7 ,specifi$ p]sonal     
casualty loss ,! t]m specifi$ p]sonal   
casualty loss means--  7i7 any          
fraud-relat$ p]sonal casualty loss1 &   
7ii7 any pyrrhotite-relat$ p]sonal      
casualty loss4  7,b7 ,fraud-relat$      
p]sonal casualty loss ,! t]m            
fraud-relat$ p]sonal casualty loss means
 any p]sonal casualty loss 7z def9$ 9   
section #afe7;h77#c77;,b7 ( ! ,int]nal  
,rev5ue ,code ( #aihf7 su/a9$ aft]      
,decemb] #ca1 #bjbj1 & be=e ,janu>y #a1 
#bjbf1 aris+ f !ft involv+ fraud1       
deceit1 or misrepres5tation 7z def9$ by 
! ,secret>y74  7,c7 ,pyrrhotite-relat$  
p]sonal casualty loss ,! t]m            
pyrrhotite-relat$ p]sonal casualty loss 
means any p]sonal casualty loss 7z def9$

 9 section #afe7;h77#c77;,b7 ( !        
,int]nal ,rev5ue ,code ( #aihf7 su/a9$  
aft] ,decemb] #ca1 #bjbj1 & be=e ,janu>y
 #a1 #bjbf1 9 connection ) damage to a  
pr9cipal resid5ce 7)9 ! mean+ ( section 
#aba ( su* ,code7 by reason (           
det]ioration ( a concrete f\ndation     
adv]sely impact$ by pyrrhotite4  ,pass$ 
! ,h\se ( ,repres5tatives ,septemb] #ae1
 #bjbf4;,cl]k4