Bill > S655

This bill, known as the "Stop Tax Penalties on American Hostages Act of 2025", aims to provide tax relief for U.S. nationals who are unlawfully detained or held hostage abroad. The bill creates a new section in the Internal Revenue Code that allows individuals who were wrongfully detained or held hostage to have the period of their detention disregarded when calculating tax deadlines, penalties, and interest. This means that any tax-related actions or payments that were missed during their detention will not be subject to late fees or penalties. The bill requires the Secretary of State and the Attorney General to provide the Treasury Department with lists of eligible individuals by January 1, 2026, and mandates that the Treasury update its systems to apply these provisions. Additionally, the bill establishes a program that allows eligible individuals or their dependents to apply for refunds or abatements of any tax-related penalties paid during their detention, with an extended period for filing such claims. The program covers the period from January 1, 2021, until the date of the bill's enactment, and provides a 90-day notice period for individuals to apply for refunds after their release. The goal is to provide financial relief and support for U.S. nationals who have been wrongfully detained or held hostage abroad.

Budget and Finance

https://www.congress.gov/bill/119th-congress/senate-bill/655/all-info