Support for Tax Relief for Victims of Crimes, Scams, and Disasters

Use your voice to support change. Scam victims are often hit twice — first by scammers and then taxed by the IRS based on the funds they used to invest in the scams.

These taxes can mean financial ruin, loss of access to public benefits, or even homelessness. Without a reinstatement of the deduction, Americans victims of theft will continue to face hefty federal tax bills that the IRS is obligated to enforce. You can help: Encourage the reintroduction and passage of the bipartisan Tax Relief for Victims of Crimes, Scams, and Disasters Act (S.3776 and H.R. 6938).

  1. Find your representative by going to Congress.gov.

  2. Copy the letter below.

  3. Replace the bracketed sections with your information. Note: Government officials require your full contact information to deliver your message to their office.

  4. Send via e-mail or postal mail.

[Date]

The Honorable [Representative/Senator’s Name]
[Office Address]
Washington, D.C. [ZIP Code]

Subject: Support for the Tax Relief for Victims of Crimes, Scams, and Disasters Act

Dear [Representative/Senator’s Last Name],

I write to express my full support for the reintroduction and passage of the Tax Relief for Victims of Crimes, Scams, and Disasters Act. 

Your leadership on this issue brings hope to millions of Americans, especially older adults — who are not only devastated by scams, but taxed on what was stolen from them. Without a reinstatement of the deduction, Americans who are victims of theft will continue to face hefty federal tax bills that the IRS is obligated to enforce.

According to the FBI’s 2023 Elder Fraud Report, older adults lost more than $3.4 billion to scams in just one year, with the average loss exceeding $33,000. Many scam survivors are blindsided by tax bills after being tricked into liquidating retirement accounts or other taxable assets under false pretenses.

For victims unable to recover their stolen funds, these taxes can mean financial ruin, loss of access to public benefits, or even homelessness.

The current lack of equitable tax relief compounds the trauma and undermines any sense of justice. While Ponzi scheme victims can deduct their losses, victims of romance scams, government impersonation, or tech support fraud have no such path. This disparity is indefensible and long overdue for correction.

The bill addresses this injustice by:

  • Reinstating the casualty and theft loss deduction for scam victims and disaster survivors

  • Providing retroactive relief back to 2018 for those impacted by prior tax law changes

  • Ensuring equal access to relief regardless of the type of scam or crime involved

This bipartisan, bicameral legislation is both fair and urgently needed. We urge all members of Congress to support its passage and help restore dignity to those who have already lost so much.

I learned about this effort from Operation Shamrock, a global initiative dedicated to combating cryptocurrency-enabled scams and financial exploitation. Operation Shamrock is at the intersection of advocacy, investigation, and education, partnering with law enforcement, legislators, and financial institutions to disrupt scams at their source.

Through survivor outreach, public awareness campaigns, and public/private coalitions, Operation Shamrock empowers communities to prevent fraud before it happens. The team also supports victims in navigating recovery while pushing for stronger laws and accountability across digital and financial systems. Whether it’s testifying before Congress or exposing international scam networks, Shamrock exists to protect the public – and demand justice for the scammed.

Thank you for standing with fraud victims and leading efforts to fix a broken system.

Sincerely,

[Your Name]
[Your Address]
[City, State, ZIP Code]
[Your Email]
[Your Phone Number]