119-hr1868

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1868 Introduced in House

    (IH) ]

<DOC>

119th CONGRESS
 1st Session
 H. R. 1868

 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.

_______________________________________________________________________

 IN THE HOUSE OF REPRESENTATIVES

 March 5, 2025

 Mr. Hill of Arkansas (for himself, Ms. Titus, Ms. Tenney, and Mr. 
 Beyer) introduced the following bill; which was referred to the 
 Committee on Ways and Means

_______________________________________________________________________

 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.

 Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

 This Act may be cited as the ``Stop Tax Penalties on American 
Hostages Act of 2025''.

SEC. 2. POSTPONEMENT OF TAX DEADLINES FOR HOSTAGES AND INDIVIDUALS 
 WRONGFULLY DETAINED ABROAD.

    (a) In General.--Chapter 77 of the Internal Revenue Code of 1986 is 
amended by inserting after 

section 7510 the following new section:

``

SEC. 7511. TIME FOR PERFORMING CERTAIN ACTS POSTPONED FOR HOSTAGES 
 AND INDIVIDUALS WRONGFULLY DETAINED ABROAD.

 ``

    (a) Time To Be Disregarded.--
 ``

    (1) In general.--The period during which an applicable 
 individual was unlawfully or wrongfully detained abroad, or 
 held hostage abroad, shall be disregarded in determining, under 
 the internal revenue laws, in respect of any tax liability of 
 such individual--
 ``
        (A) whether any of the acts described in 

section 7508

    (a)

    (1) were performed within the time prescribed 
 thereof (determined without regard to extension under 
 any other provision of this subtitle for periods after 
 the initial date (as determined by the Secretary) on 
 which such individual was unlawfully or wrongfully 
 detained abroad or held hostage abroad),
 ``
        (B) the amount of any interest, penalty, 
 additional amount, or addition to the tax for periods 
 after such date, and
 ``
            (C) the amount of any credit or refund.
 ``

    (2) Application to spouse.--The provisions of paragraph

    (1) shall apply to the spouse of any individual entitled to the 
 benefits of such paragraph.
 ``

    (3) Special rule for overpayments.--The rules of 

section 7508

    (b) shall apply for purposes of this section.
 ``

    (b) Applicable Individual.--
 ``

    (1) In general.--For purposes of this section, the term 
 `applicable individual' means any individual who is--
 ``
        (A) a United States national unlawfully or 
 wrongfully detained abroad, as determined under 

section 302 of the Robert Levinson Hostage Recovery and 
 Hostage-Taking Accountability Act (22 U.S.C. 1741), or
 ``
        (B) a United States national taken hostage 
 abroad, as determined pursuant to the findings of the 
 Hostage Recovery Fusion Cell (as described in 

section 304 of the Robert Levinson Hostage Recovery and 
 Hostage-Taking Accountability Act (22 U.S.C. 1741b)).
 ``

    (2) Information provided to treasury.--For purposes of 
 identifying individuals described in paragraph

    (1) , not later 
 than January 1, 2026, and annually thereafter--
 ``
        (A) the Secretary of State shall provide the 
 Secretary with a list of the individuals described in 
 paragraph

    (1)
        (A) , as well as any other information 
 necessary to identify such individuals, and
 ``
        (B) the Attorney General, acting through the 
 Hostage Recovery Fusion Cell, shall provide the 
 Secretary with a list of the individuals described in 
 paragraph

    (1)
        (B) , as well as any other information 
 necessary to identify such individuals.
 ``
            (c) Modification of Treasury Databases and Information Systems.--
The Secretary shall update, as necessary, any database or information 
system of the Department of the Treasury in order to ensure that the 
provisions of subsection

    (a) are applied with respect to each 
applicable individual.
 ``
            (d) Refund and Abatement of Penalties and Fines Imposed Prior to 
Identification as Applicable Individual.--In the case of any applicable 
individual--
 ``

    (1) for whom any interest, penalty, additional amount, or 
 addition to the tax in respect to any tax liability for any 
 taxable year ending during the period described in subsection

    (a)

    (1) was assessed or collected, and
 ``

    (2) who was, subsequent to such assessment or collection, 
 determined to be an individual described in subparagraph
        (A) or
        (B) of subsection

    (b)

    (1) ,
the Secretary shall abate any such assessment and refund any amount 
collected to such applicable individual in the same manner as any 
refund of an overpayment of tax under 

section 6402.''.

    (b) Clerical Amendment.--The table of sections for chapter 77 of 
the Internal Revenue Code of 1986 is amended by inserting after the 
item relating to 

section 7510 the following new item:

``

Sec. 7511. Time for performing certain acts postponed for hostages 
 and individuals wrongfully detained 
 abroad.''.
            (c) Effective Date.--The amendments made by this section shall 
apply to taxable years ending after the date of enactment of this Act.

SEC. 3. REFUND AND ABATEMENT OF PENALTIES AND FINES PAID BY ELIGIBLE 
 INDIVIDUALS.

    (a) In General.--

Section 7511 of the Internal Revenue Code of 1986, 
as added by 

section 2, is amended by adding at the end the following 
new subsection:
 ``
            (d) Refund and Abatement of Penalties and Fines Paid by Eligible 
Individuals.--
 ``

    (1) In general.--
 ``
        (A) Establishment.--Not later than January 1, 
 2026, the Secretary (in consultation with the Secretary 
 of State and the Attorney General) shall establish a 
 program to allow any eligible individual (or the spouse 
 or any dependent (as defined in 

section 152) of such 
 individual) to apply for a refund or an abatement of 
 any amount described in paragraph

    (2) (including 
 interest) to the extent such amount was attributable to 
 the applicable period.
 ``
        (B) Identification of individuals.--Not later 
 than January 1, 2026, the Secretary of State and the 
 Attorney General, acting through the Hostage Recovery 
 Fusion Cell (as described in 

section 304 of the Robert 
 Levinson Hostage Recovery and Hostage-Taking 
 Accountability Act (22 U.S.C. 1741b)), shall--
 ``
            (i) compile a list, based on such 
 information as is available, of individuals who 
 were applicable individuals during the 
 applicable period, and
 ``
            (ii) provide the list described in clause
            (i) to the Secretary.
 ``
            (C) Notice.--For purposes of carrying out the 
 program described in subparagraph
        (A) , the Secretary 
 (in consultation with the Secretary of State and the 
 Attorney General) shall, with respect to any individual 
 identified under subparagraph
        (B) , provide notice to 
 such individual--
 ``
            (i) in the case of an individual who has 
 been released on or before the date of 
 enactment of this subsection, not later than 90 
 days after the date of enactment of this 
 subsection, or
 ``
            (ii) in the case of an individual who is 
 released after the date of enactment of this 
 subsection, not later than 90 days after the 
 date on which such individual is released,
 that such individual may be eligible for a refund or an 
 abatement of any amount described in paragraph

    (2) pursuant to the program described in subparagraph
        (A) .
 ``
            (D) Authorization.--
 ``
            (i) In general.--Subject to clause
            (ii) , 
 in the case of any refund described in 
 subparagraph
        (A) , the Secretary shall issue 
 such refund to the eligible individual in the 
 same manner as any refund of an overpayment of 
 tax.
 ``
            (ii) Extension of limitation on time for 
 refund.--With respect to any refund under 
 subparagraph
        (A) --
 ``
            (I) the 3-year period of 
 limitation prescribed by 

section 6511

    (a) shall be extended until the end 
 of the 1-year period beginning on the 
 date that the notice described in 
 subparagraph
            (C) is provided to the 
 eligible individual, and
 ``
            (II) any limitation under 

section 6511

    (b)

    (2) shall not apply.
 ``

    (2) Eligible individual.--For purposes of this 
 subsection, the term `eligible individual' means any applicable 
 individual who, for any taxable year ending during the 
 applicable period, paid or incurred any interest, penalty, 
 additional amount, or addition to the tax in respect to any tax 
 liability for such year of such individual based on a 
 determination that an act described in 

section 7508

    (a)

    (1) which 
 was not performed by the time prescribed therefor (without 
 regard to any extensions).
 ``

    (3) Applicable period.--For purposes of this subsection, 
 the term `applicable period' means the period--
 ``
        (A) beginning on January 1, 2021, and
 ``
        (B) ending on the date of enactment of this 
 subsection.''.

    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years ending on or before the date of enactment of this Act.
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