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119-hr-9496119th CongressWALLET

End Tax Penalties on American Hostages Act

Sponsored By: Representative Tenney, Claudia [R-NY-24]

Passed Senate

Summary

Suspending tax deadlines and refunding penalties for U.S. nationals wrongfully detained or held hostage abroad. This bill would pause tax filing and payment timelines while an eligible person is unlawfully detained or held hostage and set up a process to refund or abate penalties and interest tied to those periods.

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  • U.S. nationals taken hostage or wrongfully detained and their spouses would have the detention period disregarded for tax filing deadlines, interest, penalties, additions to tax, and for determining credits or refunds.
  • Treasury must update its systems and stop interest, penalties, and collection actions during the applicable detention period while coordinating identity lists with the Department of State and the Attorney General's Hostage Recovery Fusion Cell.
  • A refund and abatement program would let eligible individuals apply to recover penalties and interest paid for periods from January 1, 2021 through the date of enactment. The Secretary would notify released individuals and administer refunds with rules that begin January 1, 2027 for providing identification lists.

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Bill Overview

Analyzed Economic Effects

2 provisions identified: 2 benefits, 0 costs, 0 mixed.

Past tax penalty refunds for Americans held

Treasury would create a refund and charge-cancellation program by January 1, 2027, covering January 1, 2021, through enactment. Eligible people would be U.S. nationals officially found to be wrongfully or unlawfully detained, or held hostage, abroad. They would need charges from a covered tax task being judged late, ignoring extensions, for a tax year ending in that window. They, their spouses, or their tax dependents would be able to apply to cancel unpaid charges or recover payments, including interest. State and Justice officials would identify eligible people by January 1, 2027, and help Treasury run the program. Treasury would send notice within 90 days after enactment to people already released, or within 90 days after later release. The usual three-year refund filing limit would extend through one year after notice, and the usual limit on how far back refunds reach would not apply. Refunds would follow the regular tax-overpayment refund process.

Tax deadline relief for Americans held abroad

The bill would give tax deadline relief to U.S. nationals officially found to be wrongfully or unlawfully detained, or held hostage, abroad. Their spouses would also qualify, and relief would apply to tax years ending after enactment. Treasury would exclude the covered detention time after its chosen starting date when checking certain tax deadlines and calculating charges, credits, and refunds. This would not change interest paid on tax overpayments. If someone qualified after charges were assessed or collected, Treasury would cancel qualifying charges and refund collected amounts for tax years ending during detention. State and Justice officials would send Treasury identifying lists by January 1, 2027, and annually afterward. Treasury would update its systems to pause relevant legal time limits, interest and penalties, and collection activity.

Sponsors & CoSponsors

Sponsor

Tenney, Claudia [R-NY-24]

NY • R

Cosponsors

  • Rep. Titus, Dina [D-NV-1]

    NV • D

    Sponsored 6/29/2026

  • Rep. Beyer, Donald S. [D-VA-8]

    VA • D

    Sponsored 6/29/2026

Roll Call Votes

No roll call votes available for this bill.

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