Knowing IRS Guidelines for Fraud-Related Deductions

ARTICLE | June 23, 2025

The digital era has made it easier to manage finances and investments online, but it has also opened the door to a new wave of scams and fraudulent schemes. These schemes can result in substantial monetary losses for unsuspecting victims. Fortunately, under certain circumstances, individuals may be able to deduct some of these losses on their federal income tax returns. Recent clarifications by the IRS have helped define which fraud-related losses may qualify for deductions, and which remain nondeductible personal losses.

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