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Stop Tax Penalties on American Hostages Act of 2025
3/13/2025, 1:23 AM
Summary of Bill S 655
The primary goal of the bill is to alleviate some of the financial burdens faced by individuals who find themselves in these difficult and often traumatic circumstances. By postponing tax deadlines and reimbursing late fees, the bill aims to provide some measure of financial relief to those who are unlawfully or wrongfully detained or held hostage abroad.
In addition to providing financial relief, the bill also includes provisions for other purposes related to the detainment or hostage situation. While the specifics of these provisions are not outlined in the summary, it can be inferred that they are intended to provide additional support and assistance to individuals in these situations. Overall, Bill 119 s 655 seeks to address the financial challenges faced by United States nationals who are unlawfully or wrongfully detained or held hostage abroad, and to provide them with some measure of relief during what is undoubtedly a difficult and trying time.
Congressional Summary of S 655
Stop Tax Penalties on American Hostages Act of 2025
This bill extends certain federal tax deadlines for U.S. nationals who are unlawfully or wrongfully detained abroad or held hostage abroad and their spouses. The bill also allows for an abatement and refund of additional taxes, interest, and penalties assessed to such individuals for failing to meet a federal tax deadline during a period of detention.
Specifically, under the bill, the time period during which a U.S. national is unlawfully or wrongfully detained abroad or held hostage abroad is disregarded in determining certain federal tax deadlines, including deadlines for
- filing a return for and paying federal income, estate, gift, employment, or excise taxes;
- a tax credit or refund claim; and
- the determination, assessment, and collection of additional taxes, interest, or penalties.
The bill requires the Department of State and the Department of Justice to annually provide the Internal Revenue Service (IRS) with lists to identify U.S. nationals who qualify for an extension.
The bill also requires the IRS to (1) abate and refund additional taxes, interest, and penalties assessed for any tax year ending during a period of detention for which an extension of a federal tax deadline is permitted; and (2) establish a program allowing U.S. nationals unlawfully or wrongfully detained abroad or taken hostage abroad (or their spouse or dependent) to claim a refund of additional taxes, interest, and penalties assessed for any tax year ending during a period of detention from 2021 to the bill’s enactment date.
Read the Full Bill
Current Status of Bill S 655
Bipartisan Support of Bill S 655
Total Number of Sponsors
1Democrat Sponsors
1Republican Sponsors
0Unaffiliated Sponsors
0Total Number of Cosponsors
9Democrat Cosponsors
3Republican Cosponsors
6Unaffiliated Cosponsors
0Policy Area and Potential Impact of Bill S 655
Primary Policy Focus
Alternate Title(s) of Bill S 655
Comments
Kinslee Dixon
1 year ago
I support this bill and believe it is important to provide assistance to US nationals who are unlawfully detained abroad. It's a step in the right direction to help those in difficult situations. #supportingUSBill655
