End Tax Penalties on American Hostages Act

A bill to stop the IRS from charging late fees, interest, and penalties to Americans who were held hostage or wrongfully detained abroad, and to refund what was charged to them since 2021. Both parties agreed it was obviously reasonable — apparently the only debate was over how to say 'hostages shouldn't get tax bills' in the most moving way possible. Members mostly traded heartfelt one-liners, thanked each other, and mentioned constituents who'd been detained, then voted yes with no actual disagreement on the record.Written by GLM 5.3 Flash. Updated .

Official Congressional Record (opens in a new tab)

Judy Chu, CA

Democrat
“I want this bill to pass. I want the government to stop making hostages and their spouses pay late fees, interest, and penalties on their taxes. Right now, the tax office does not have power to waive penalties. The bill fixes that. It also lets the tax office give back money charged since 2021. This is a simple fix to help Americans who have suffered enough.”
73% shorter Analysis
Official Congressional Record

Mr. Speaker, I yield myself such time as I may consume. I rise today in support of H.R. 9496, the End Tax Penalties on American Hostages Act. I thank my colleagues, Ms. Tenney and Mr. Beyer, for their leadership on this bill. This is a commonsense bill that would prevent hostages, detainees, and their spouses from experiencing unnecessary financial hardships when they are unable to meet their Federal tax obligations. Often, hostages and detained Americans return home to massive tax bills from the IRS in the form of late payments, interest, and penalties, sometimes totaling tens of thousands of dollars. However, the IRS does not currently have the authority to waive filing deadlines, interest, or penalties. This bill would address this issue by postponing tax deadlines and assessments of interest and penalties for any U.S. national held hostage or detained abroad. It would also extend relief to the spouse of the hostage or detainee. Additionally, the bill enables the Secretary of the Treasury to refund and abate any relevant interest, penalties, or addition to tax that was assessed or collected on hostages and detainees since January 2021. It also requires the Secretary to ensure that databases and information systems are updated to permit proper tracking of deadlines and limitation periods applicable to individuals entitled to relief. This bill would simply remove one more unnecessary obstacle and worry for our fellow Americans during an extraordinarily difficult time. Mr. Speaker, I reserve the balance of my time.

Judy Chu, CA

Democrat
“This is a good bill. I want people to vote for it. That's my whole speech.”
73% shorter Analysis
Official Congressional Record

Mr. Speaker, I have no further speakers. I am prepared to close. This bill is a commonsense way to ensure that those who have experienced the unimaginable do not face additional challenges upon their return home. I urge my colleagues on both sides of the aisle to vote ``yes'' on this bill. I yield back the balance of my time.

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