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Rep. Bosland urges tax relief for victims of financial scams in Ways & Means hearing
Summary
A Vermont lawmaker and a constituent described how seniors who lose retirement funds to scams can end up owing taxes and higher Medicare premiums; Representative Michelle Bosland introduced a short-form bill (H115) and committee members agreed to coordinate with the tax advocate and attorney general's office.
Representative Michelle Bosland, who represents the Windham-3 District, introduced a short-form bill at the Ways & Means Committee hearing on Feb. 7 intended to provide tax relief to victims of financial scams.
Bosland said the bill’s purpose is “to provide tax relief to victims of financial scams,” and described a pattern in which retirees who have funds stolen then face state and federal tax bills on money they no longer possess. “When retirement accounts are liquidated, victims not only lose their funds, but then they end up owing taxes on this money that has been stolen from them,” Bosland said.
The measure, filed as H115 on the committee’s agenda, is intended to address what Bosland called a growing problem for older Vermonters. She told the committee that recent reporting documented about 50 Vermonters who lost close to $5 million in 2023 and said the state’s aging population makes the issue likely to continue. “It is getting more and more complicated,” Bosland said, citing advances in technology and increasingly sophisticated schemes.
A constituent who identified herself as Dr. Balakrishnan told the committee she was scammed on Aug. 1, 2023, after receiving an email purporting to be from the Vermont State Employees Credit Union and then being contacted by people posing as a bank fraud officer and other officials. “From August 1 till about maybe the September 25 or so was the loneliest, most painful time of my life,” she said, describing coordinated phone calls and emails that used real names and official-looking phone numbers to convince her to disclose information. She said the fraud not only cost her savings but also produced downstream effects: “my Medicare rate raised over $400 a month because it looked like I had all this money that was stolen from me.”
Dr. Balakrishnan said she contacted multiple agencies after the theft, including the FBI, FTC and the Vermont Attorney General’s Office, and that she had not yet received help from the AG’s office: “To date, I've not heard back from them.” She also reported outreach to members of Vermont’s federal delegation, and said offices indicated they were involved with or monitoring related federal legislation.
A committee member who identified herself as Bela Bela Christian added that her friend in banking had a similar experience and warned the committee that victims often end up living on Social Security after losing retirement funds. “You are not alone,” she said.
Committee leadership responded that staff would coordinate with the office of the tax advocate and the Vermont attorney general’s office to explore options. No formal vote or committee action on H115 was recorded during the hearing; the discussion primarily gathered testimony and personal accounts and asked staff to examine details and potential policy options.
Bosland said the committee would need to flesh out the details of any relief, including how state tax treatment would interact with federal rules. She described ongoing contact with the federal delegation but added she did not expect a federal fix immediately and hoped Vermont could act sooner.
The session closed with a request that the committee receive further detail on possible approaches and the impacts of any relief on related programs such as property tax refunds and Medicare premiums.
