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)

Jason Smith, MO

Republican
“Let's vote on this bill. The bill stops the government from charging late fees to people who were held hostage. I want the bill to pass today.”
76% shorter Analysis
Official Congressional Record

Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 9496) 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, as amended. The Clerk read the title of the bill. The text of the bill is as follows: ``Sec. 7511. Time for performing certain acts postponed for hostages The SPEAKER pro tempore (Mr. Rulli). Pursuant to the rule, the gentleman from Missouri (Mr. Smith) and the gentlewoman from California (Ms. Chu) each will control 20 minutes. The Chair recognizes the gentleman from Missouri.

Jason Smith, MO

Republican
“I want this bill to pass. The bill stops the government from charging penalties and interest to Americans who were held hostage. Right now, they get penalized for not paying taxes while they were captured. That is stupid. Our committee supports the bill. I want this fixed now.”
78% shorter Analysis
Official Congressional Record

Mr. Speaker, I yield myself such time as I may consume. Mr. Speaker, I rise today in support of H.R. 9496, the End Tax Penalties on American Hostages Act, introduced by Representative Tenney. It seems impossible to imagine that any American who has been held hostage or wrongfully detained abroad and is safely returned home could then face a penalty from the IRS for failure to pay taxes while in captivity. Yet, under current law, those Americans and their families could owe thousands of dollars in tax penalties and fines. As of 2025, an estimated 74 Americans were being held abroad against their will. Right now, the IRS has no authority to provide extended relief to these taxpayers or to lessen or eliminate interest payments on tax liabilities. This is not just unfair, it is absurd. That is why this legislation received unanimous support in the Ways and Means Committee earlier this summer, and a previous version of Representative Tenney's bill was also approved by the House of Representatives last Congress. This gap in our tax code deserves to be closed once and for all. I appreciate Representative Tenney's continued leadership on this issue and her commitment to American families who have endured unspeakable hardship and tragedy. I reserve the balance of my time.

Judy Chu, CA

Democrat

Linked statement

“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.

Claudia Tenney, NY

Republican
“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. My own constituent suffered in captivity. He is home now. This bill helps people like him. I want you to vote for it.”
71% shorter Analysis
Official Congressional Record

Mr. Speaker, I rise in support of the End Tax Penalties on American Hostages Act. The objective of this bill is very straightforward. No American who has suffered wrongful detention or hostage-taking by our adversaries should return home to face penalties from the IRS. Under current tax law, individuals who have been held against their will can be subject to late tax payment penalties after returning home from captivity. This defies common sense and is antithetical to what we stand for as Americans. This is an overlooked flaw in our tax code that can only worsen the trauma of individuals and families who have already faced extraordinary challenges if this is not addressed by Congress. The End Tax Penalties on American Hostages Act protects American hostages, wrongful detainees, and their families from tax penalties incurred because of circumstances beyond their control. This bill was precipitated because of cases like my constituent Ryan Corbett, a husband and father from Dansville, New York, who was wrongfully detained by the Taliban for 875 days. Ryan was held in a 9-foot-by-9- foot basement cell without regular access to the bathroom, sunlight, or appropriate medical care. Ryan was in dire health by the time he returned to his wife, Anna, and his 3 children, Ketsia, Miriam, and Caleb in January 2025. While Ryan and his family have not been subjected to tax penalties from the IRS, the fact that it was a possibility under the circumstances is unacceptable. While I am thankful that we are taking a pivotal step today to correct that injustice, we must continue to fight to secure the release of Americans being illegally held abroad as Ryan was. In closing, I ask my colleagues to support the End Tax Penalties on American Hostages Act to send a clear message that we stand by our fellow citizens who have endured unthinkable circumstances abroad.

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.

Jason Smith, MO

Republican
“I want to talk about this bill. People come back from being hostages. They should not get tax bills. That is mean. I am happy we are passing this bill again. I want everyone to vote yes. We should send it to the Senate. We should not punish people for being hostages. That is the right thing to do.”
54% shorter Analysis
Official Congressional Record

Mr. Speaker, I yield myself the balance of my time to close. When we welcome home Americans who have been held hostage abroad, they should receive a handshake or a warm hug, not a tax bill. I appreciate Representatives Tenney bringing this bill back to the Ways and Means Committee this Congress so that we can once again pass it here in the House and send it to the Senate. We should not punish Americans for being held hostage. Preventing the IRS from penalizing our fellow citizens and their families who have suffered at the hands of hostage-takers or hostile foreign governments is the right and decent thing to do. I encourage all of my colleagues to support this legislation, and I yield back the balance of my time.

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