Opinion | A 2017 tax law is hurting cybercrime victims — now Congress wants to make it permanent – By Douglas Brook (The Hill) / Jan 7, 2024
The 2017 Tax Cuts and Jobs Act (TCJA) punishes victims of cybercrime. As Congress returns for its 2024 session, these unintended consequences need to be addressed in the pending tax cut extension bills.
The Washington Post recently reported on the effects of current U.S. tax policy on victims of cybercrimes. In one case, the victim faced a six-figure tax bill for withdrawals from her retirement account stolen by scammers. In another, the victim had to take out a home mortgage to cover taxes on retirement withdrawals and other financial transactions.
I was a victim of a similar scam and lost over 10 percent of my net worth. My insurance covered only $200 of my loss. Fortunately, my retirement funds are not affected, but I face tax liability on the sale of other investments done to raise cash that the scammers immediately took.
