End Tax Penalties on American Hostages Act
Sponsored By: Representative Tenney, Claudia [R-NY-24]
In Committee
Summary
Pauses tax deadlines, penalties, and interest for U.S. nationals who are unlawfully detained or held hostage abroad. The bill would also create a path to refund or abate penalties paid because detention delayed tax actions.
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- Affected individuals: U.S. nationals unlawfully detained abroad or taken hostage would have the detention period ignored for filing, payment, penalty, and interest deadlines. Spouses of eligible individuals are covered as well.
- Retroactive refunds: Creates a program to refund or abate penalties and related amounts paid for taxable periods from Jan 1, 2021 through the date of enactment. The program must be established by Jan 1, 2027 and extends deadlines for claiming those refunds.
- Administration and identification: The Secretary of State and the Attorney General must provide lists to Treasury to identify eligible people. Treasury must update databases to suspend statute expirations, interest and penalty accrual, and collection activity while the postponement applies.
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Bill Overview
Analyzed Economic Effects
1 provisions identified: 1 benefits, 0 costs, 0 mixed.
Tax relief for U.S. hostages
If enacted, U.S. nationals who were unlawfully or wrongfully detained abroad or held hostage would have the time they were detained ignored for federal tax deadlines and for calculating penalties or interest. The same rule would apply to their spouses. The Treasury would stop statute deadlines, suspend penalty and interest accrual, and update its systems; the Secretary would set the official start date for the disregarded period. If you are later identified as eligible, the IRS would abate assessments and refund penalties, interest, and additions to tax, processed like tax overpayment refunds. The bill would also require a refund program by January 1, 2027 for amounts from January 1, 2021 through the date of enactment, with notice to eligible people and extended refund claim deadlines (the normal three‑year limit would be extended until one year after notice and another filing time limit would be waived). The bill would not change how interest on tax overpayments is calculated.
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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