Retirees Face Significant Tax Bills Due to Fraud

A new report sheds light on how older adult scam victims end up with big tax bills and lost retirement savings.

silver letters spelling the word fraud
(Image credit: Getty Images)

Retirees are being targeted by scams that not only bring financial devastation but also significant IRS tax bills. A recent report paints a stark picture of how older adults in Pennsylvania, Ohio, Florida, Utah, California, and other states have fallen victim to fraud — only to be burdened by taxes on their lost retirement savings.

Sen. Bob Casey (D-Pa) chair of the U.S. Senate Special Committee on Aging spearheaded the report, which concludes that limitations on the theft loss tax deduction have contributed to retirees' financial challenges. Casey argues that those changes, made as part of the Tax Cuts and Jobs Act of 2017 (TCJA, also known as the Trump Tax Cuts), should be reversed.

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Kelley R. Taylor
Senior Tax Editor,

As the senior tax editor at, Kelley R. Taylor simplifies federal and state tax information, news, and developments to help empower readers. Kelley has over two decades of experience advising on and covering education, law, finance, and tax as a corporate attorney and business journalist.