What does Preamble of Stop Tax Penalties on American Hostages Act of 2025 do?

This bill, formally titled 'To amend the Internal Revenue Code of 1986 to postpone tax deadlines and reimburse paid late fees for United States nationals who are unlawfully or wrongfully detained or held hostage abroad, and for other purposes,' aims to modify the Internal Revenue Code. The bill proposes to postpone tax deadlines and reimburse late fees. These provisions are intended for United States nationals who are detained or held hostage abroad.

What does SHORT TITLE. of Stop Tax Penalties on American Hostages Act of 2025 do?

This bill is formally titled the 'Stop Tax Penalties on American Hostages Act of 2025'.

What does POSTPONEMENT OF TAX DEADLINES FOR HOSTAGES AND INDIVIDUALS of Stop Tax Penalties on American Hostages Act of 2025 do?

This section amends the Internal Revenue Code of 1986 by adding a new section, 7511. Section 7511 establishes a process to disregard the period during which an 'applicable individual' was unlawfully or wrongfully detained abroad or held hostage when determining tax liabilities. An 'applicable individual' is a U.S. national who is either unlawfully or wrongfully detained abroad or taken hostage abroad, as determined by specific acts. The Secretaries of State and Justice are required to provide lists of applicable individuals to the Secretary of the Treasury by January 1, 2026, and annually thereafter. The Treasury Secretary must update databases to ensure the provisions of the new section are applied. If an individual is later identified as an 'applicable individual' after penalties or interest were assessed, the Secretary must abate the assessment and refund any amounts collected. The amendments apply to taxable years ending after the date of enactment of this Act.

What does REFUND AND ABATEMENT OF PENALTIES AND FINES PAID BY ELIGIBLE of Stop Tax Penalties on American Hostages Act of 2025 do?

This section amends the Internal Revenue Code of 1986 to establish a program for eligible individuals to apply for refunds or abatements of penalties and fines. The Secretary, in consultation with the Secretary of State and the Attorney General, must establish this program no later than January 1, 2026. The Secretary of State and Attorney General are tasked with compiling a list of individuals who were 'applicable individuals' during the 'applicable period' and providing it to the Secretary. Eligible individuals will receive notice of their potential eligibility for a refund or abatement within 90 days of release (if released before enactment) or 90 days after release (if released after enactment). The Secretary is authorized to issue refunds to eligible individuals in the same manner as other tax refunds. The 3-year period of limitation for refunds under section 6511(a) is extended until the end of the 1-year period beginning on the date the notice is provided. An 'eligible individual' is defined as an 'applicable individual' who paid interest, penalties, or additional amounts due to a failure to perform an act required by section 7508(a)(1). The 'applicable period' spans from January 1, 2021, to the date of enactment of this section.

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Stop Tax Penalties on American Hostages Act of 2025

Last updated: 3/5/2025 · Introduced: 3/5/2025

Author: J. Hill (R-AR)

TL;DR (AI)

The bill postpones tax deadlines for United States nationals who are unlawfully or wrongfully detained or held hostage abroad, disregarding the period of detention when determining tax liabilities.
The Secretary of the Treasury must reimburse eligible individuals for late fees and penalties paid due to failure to perform tax-related acts while being detained or held hostage.
The bill establishes a program for eligible individuals to apply for refunds or abatements of penalties and fines, with the Secretary of State and Attorney General providing lists of eligible individuals to the Secretary of the Treasury.

119th Congressin committeeS. 3931(In Committee)Official page

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Includes provisions on preamble, short title., and 2 more.

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