Stop Tax Penalties on American Hostages Act of 2025
Sponsored By: Representative Hill (AR)
Introduced
Summary
Postpones tax deadlines and refunds penalties for U.S. nationals held hostage or wrongfully detained abroad. It would create a new tax-code rule that treats unlawful detention or hostage status as a tolling event for certain tax deadlines and penalties.
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- Would pause the timing for tax acts that trigger interest, penalties, or additions to tax by disregarding the period of unlawful or wrongful detention when calculating deadlines. It applies to U.S. nationals identified under the Levinson Hostage Recovery and Hostage-Taking Accountability Act or by findings of the Hostage Recovery Fusion Cell.
- Creates a refund and abatement program for penalties, interest, and additions to tax paid during the applicable period of Jan. 1, 2021 to the date of enactment. Eligible individuals include the affected person and their spouse or dependents and refunds are treated as overpayments under section 6402 with an extended claim window.
- Directs the Secretary of State and the Attorney General (through the Hostage Recovery Fusion Cell) to provide lists of applicable individuals by Jan. 1, 2026 and annually. It also requires the Treasury Secretary to update tax databases, notify identified people, and implement the refund program.
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Bill Overview
Analyzed Economic Effects
3 provisions identified: 3 benefits, 0 costs, 0 mixed.
Pause IRS deadlines during hostage detention
If enacted, time you were unlawfully detained or held hostage abroad would not count toward IRS deadlines. Interest and penalties would not run for that time, and credits or refunds would be figured without counting it. Your spouse would also get this relief. The start date would be the date the government sets for when your detention or hostage status began. Treasury would update IRS systems to apply this automatically. This would apply to tax years ending after the bill is enacted.
Refund tax penalties for hostages and detainees
If enacted, Treasury would cancel and refund interest and penalties you paid that were tied to missed tax acts while you were unlawfully detained or held hostage abroad. You, your spouse, or your dependent could apply. The refund program must start by January 1, 2026. The window for these refunds would cover January 1, 2021 through the date the bill is enacted. State and Justice would identify eligible people, and IRS would send notice within 90 days after enactment or within 90 days after release. You would have one year after that notice to claim a refund, even if the normal three-year deadline passed.
Who qualifies for hostage tax relief
If enacted, you would qualify only if the U.S. finds you were unlawfully or wrongfully detained abroad, or taken hostage abroad. These findings come from the Levinson Act process or the Hostage Recovery Fusion Cell. This definition decides who can get the deadline pause and penalty refunds.
Sponsors & CoSponsors
Sponsor
Hill (AR)
AR • R
Cosponsors
Titus
NV • D
Sponsored 3/5/2025
Tenney
NY • R
Sponsored 3/5/2025
Beyer
VA • D
Sponsored 3/5/2025
Nadler
NY • D
Sponsored 3/31/2025
LaLota
NY • R
Sponsored 4/8/2025
Fitzpatrick
PA • R
Sponsored 4/8/2025
Suozzi
NY • D
Sponsored 4/8/2025
Vindman
VA • D
Sponsored 4/14/2025
Haridopolos
FL • R
Sponsored 4/17/2025
Williams (GA)
GA • D
Sponsored 5/6/2025
Conaway
NJ • D
Sponsored 5/7/2025
Gottheimer
NJ • D
Sponsored 9/8/2025
Dunn (FL)
FL • R
Sponsored 1/13/2026
Hamadeh (AZ)
AZ • R
Sponsored 1/13/2026
Roll Call Votes
No roll call votes available for this bill.
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