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S. 655

BillFederalSenateIn Committee
Stop Tax Penalties on American Hostages Act of 2025
About This Bill
Committee
Latest Action · February 20, 2025
Read twice and referred to the Committee on Finance.
Congress
119th (2025–2027)
Introduced
February 20, 2025
Sponsor
Sen. Christopher A. CoonsD
Cosponsors (9)
3D 6R
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Summary

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This bill provides tax relief to U.S. citizens who are unlawfully detained or held hostage abroad. It allows the IRS to disregard the time someone is held hostage when calculating whether they met tax deadlines, meaning they won't face interest, penalties, or other fees for missed filings or payments during their captivity. The legislation also requires the Secretary of State and Attorney General to compile lists of affected individuals and notify them by January 1, 2026, so they can apply for refunds or abatement of penalties already paid. Additionally, the bill refunds any taxes, fees, or interest penalties that were assessed or collected from hostages before they were officially identified as such. The relief applies retroactively to tax years ending after January 1, 2021, and extends the standard three-year window for filing refund claims by one additional year from when individuals receive notice of their eligibility.

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