End Tax Penalties on American Hostages Act
- Bill Number
- H.R. 9496
- Origin Chamber
- House
- Congress
- 119th Congress, Session 2
- Policy Area
- Taxation
- Status
- Passed Senate
- Latest Action
- 2026-09-30: Passed Senate without amendment by Unanimous Consent. (consideration: CR S5238-5239)
- Last Updated
- 2026-10-09T03:38:25Z
AI-Generated Summary
End Tax Penalties on American Hostages Act (H.R. 9496)
Purpose
This legislation amends the Internal Revenue Code of 1986 to postpone certain tax deadlines and provide refunds or abatements for interest, penalties, and related amounts for United States nationals who are unlawfully or wrongfully detained or held hostage abroad. It aims to prevent tax-related penalties from accruing during periods of such detention or hostage situations.
Key Provisions
- Postponement of Tax Deadlines: Introduces new Internal Revenue Code section 7511, which disregards the period of unlawful or wrongful detention or hostage status when determining whether tax-related acts (such as filing returns or paying taxes) were completed on time, calculating interest or penalties, or handling credits and refunds. This applies to the affected individual and their spouse.
- Definition of Applicable Individuals: Covers United States nationals identified as unlawfully or wrongfully detained abroad under the Robert Levinson Hostage Recovery and Hostage-Taking Accountability Act, or as hostages based on determinations by the Hostage Recovery Fusion Cell. The Secretary of State and Attorney General must provide lists of such individuals to the Treasury Secretary annually starting January 1, 2027.
- Refund and Abatement for Prior Periods: Requires the Treasury Secretary to establish a program by January 1, 2027, to refund or abate penalties, interest, and related amounts paid by eligible individuals for tax years ending between January 1, 2021, and the date of enactment. This includes notice to affected individuals and extensions to the usual time limits for claiming refunds.
- System Updates and Special Rules: Directs updates to Treasury databases to suspend interest, penalties, and collections. Special rules address overpayments and ensure refunds are handled like tax overpayments.
- Effective Dates: The postponement provisions apply to tax years ending after enactment; the refund program applies to tax years ending on or before enactment.
Significant Changes to Existing Law
- Creates a new section (7511) in Chapter 77 of the Internal Revenue Code, extending postponement benefits similar to those for certain military personnel or disasters but specifically for hostages and wrongfully detained individuals.
- Mandates interagency information sharing between the Departments of State, Justice, and Treasury to identify eligible individuals.
- Extends standard refund claim deadlines (under sections 6511(a) and 6511(b)(2)) for up to one year after notice is provided under the new program.
- Requires proactive abatement and refund of previously assessed penalties without requiring the individual to initiate a claim in some cases.
Potential Impacts
- On Government Agencies: Requires the Treasury Department to modify information systems and process refunds; the Department of State and Attorney General must compile and share identification lists, potentially increasing administrative coordination.
- On Citizens: Provides relief from tax penalties and interest for affected United States nationals and their spouses, with opportunities for refunds of amounts paid since 2021.
- On International Relations: No direct provisions, but supports existing hostage recovery frameworks by aligning tax relief with determinations made under the Robert Levinson Hostage Recovery and Hostage-Taking Accountability Act.
Main Stakeholders Affected
- United States nationals who are or were unlawfully or wrongfully detained or held hostage abroad, along with their spouses and dependents.
- The Department of the Treasury (Internal Revenue Service), Department of State, and Department of Justice (including the Hostage Recovery Fusion Cell).
- Individuals or families who paid tax penalties or interest during the applicable periods.
Notable Legal, Constitutional, or Political Implications
- Extends taxpayer protections by treating detention or hostage status as a basis for disregarding time periods under tax laws, similar to existing disaster or combat zone relief.
- Involves executive branch agencies in identifying beneficiaries through lists and notices, with no apparent changes to constitutional tax authority or due process standards.
- Applies retroactively for refunds from 2021 onward, potentially affecting a limited number of individuals based on existing hostage-related determinations.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Rep. Tenney, Claudia [R-NY-24]
Cosponsors (2)
Rep. Titus, Dina [D-NV-1], Rep. Beyer, Donald S. [D-VA-8]
Recent Actions
- 2026-09-30: Passed Senate without amendment by Unanimous Consent. (consideration: CR S5238-5239)
- 2026-09-30: Passed/agreed to in Senate: Passed Senate without amendment by Unanimous Consent.
- 2026-09-30: Senate Committee on Finance discharged by Unanimous Consent.
- 2026-09-30: Senate Committee on Finance discharged by Unanimous Consent.
- 2026-09-16: Received in the Senate and Read twice and referred to the Committee on Finance.
- 2026-09-15: Motion to reconsider laid on the table Agreed to without objection.
- 2026-09-15: On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote. (text: CR H5683-5684)
- 2026-09-15: Passed/agreed to in House: On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote.
- 2026-09-15: DEBATE - The House proceeded with forty minutes of debate on H.R. 9496.
- 2026-09-15: Considered under suspension of the rules. (consideration: CR H5683-5685)
- 2026-09-15: Mr. Smith (MO) moved to suspend the rules and pass the bill, as amended.
- 2026-09-08: Placed on the Union Calendar, Calendar No. 697.
- 2026-09-08: Reported (Amended) by the Committee on Ways and Means. H. Rept. 119-797.
- 2026-09-08: Reported (Amended) by the Committee on Ways and Means. H. Rept. 119-797.
- 2026-07-01: Ordered to be Reported in the Nature of a Substitute by the Yeas and Nays: 40 - 0.
Bill Versions
- End Tax Penalties on American Hostages Act — issued 2026-09-15 — PDF (12 pages)
- End Tax Penalties on American Hostages Act — issued 2026-10-09 — PDF (4 pages)
- End Tax Penalties on American Hostages Act — issued 2026-06-29 — PDF (9 pages)
- End Tax Penalties on American Hostages Act — issued 2026-09-16 — PDF (10 pages)
- End Tax Penalties on American Hostages Act — issued 2026-09-08 — PDF (12 pages)