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

This bill, formally titled 'A BILL 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 amend the Internal Revenue Code of 1986. The bill intends to postpone tax deadlines. It also seeks to reimburse paid late fees. These provisions are targeted towards United States nationals who are unlawfully or wrongfully 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, to address tax deadlines for hostages and individuals wrongfully detained abroad. The new section disregards the period of unlawful or wrongful detention when determining whether certain acts described in section 7508(a)(1) were performed on time. It also addresses the amount of interest, penalties, additional amounts, or additions to tax, as well as credits or refunds, for applicable individuals. The term 'applicable individual' includes U.S. nationals unlawfully or wrongfully detained abroad, or taken hostage abroad, as determined under 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 Secretary of the Treasury must update databases to apply the new provisions. 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 enactment or release, whichever is later. Refunds will be issued in the same manner as any other tax refund. The 3-year period of limitation for refunds 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: 2/20/2025 · Introduced: 2/20/2025

Author: Christopher Coons (D-DE)

TL;DR (AI)

This bill postpones tax deadlines and disregards periods of unlawful detention when determining if tax-related actions were performed on time for U.S. nationals held hostage or wrongfully detained abroad.
It establishes a program allowing eligible individuals detained abroad between January 1, 2021, and the bill's enactment date to apply for refunds or abatements of penalties and fines.
The Secretaries of State and Justice must provide lists of affected individuals to the Secretary of the Treasury to facilitate these tax relief provisions.

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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