End Tax Penalties on American Hostages Act
- Bill Number
- H.R. 9496
- Origin Chamber
- House
- Congress
- 119th Congress, Session 2
- Policy Area
- Taxation
- Status
- Introduced
- Latest Action
- 2026-07-01: Ordered to be Reported in the Nature of a Substitute by the Yeas and Nays: 40 - 0.
- Last Updated
- 2026-07-07T17:58:35Z
AI-Generated Summary
Purpose This legislation aims to provide tax relief to U.S. nationals who are unlawfully or wrongfully detained or held hostage abroad by postponing certain tax deadlines and refunding or canceling related penalties and interest.
Key Provisions
- New Tax Code Section: Adds Section 7511 to the Internal Revenue Code, which disregards the time an individual was detained or held hostage when calculating tax filing deadlines, interest, penalties, and refunds.
- Eligibility: Applies to U.S. nationals identified by the State Department as unlawfully or wrongfully detained or by the Hostage Recovery Fusion Cell as hostages. The relief also extends to their spouses.
- Agency Coordination: Requires the State Department and Attorney General to share lists of eligible individuals with the Treasury Department starting in 2027.
- System Updates: Directs the Treasury to modify its databases to suspend interest, penalties, and collections automatically.
- Retroactive Relief: Establishes a program (effective by January 1, 2027) to refund or cancel penalties and interest paid for periods from January 1, 2021, onward, including for individuals identified after payment.
- Notice and Timing: Requires the Treasury to notify eligible individuals within 90 days of release or enactment, with an extended one-year window to claim refunds beyond standard limits.
Significant Changes to Existing Law
- Creates a new exception in tax administration that treats detention or hostage periods as if they did not occur for penalty and deadline purposes.
- Introduces automatic abatement and refund processes for penalties assessed before an individual is officially identified as eligible.
- Extends the usual three-year limit for refund claims in these specific cases.
Potential Impacts
- Government Agencies: Requires new coordination and data-sharing between the Treasury, State Department, and Attorney General, plus updates to IRS systems to pause collections and interest.
- Citizens: Provides financial relief to affected individuals and their families by eliminating or returning late fees and interest tied to tax obligations during detention.
- International Relations: No direct changes, though the measure supports U.S. nationals held abroad by reducing domestic financial burdens upon return.
Main Stakeholders Affected
- U.S. nationals detained or held hostage abroad and their spouses or dependents.
- The Internal Revenue Service and Treasury Department.
- The Department of State.
- The Department of Justice through the Hostage Recovery Fusion Cell.
Notable Legal, Constitutional, or Political Implications
- The bill modifies standard tax limitation periods and penalty rules without altering constitutional tax authority.
- It relies on executive branch determinations for eligibility, which could affect how individuals are classified.
- Introduced with bipartisan support in the House and referred to the Ways and Means Committee.
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
- 2026-07-01: Ordered to be Reported in the Nature of a Substitute by the Yeas and Nays: 40 - 0.
- 2026-07-01: Committee Consideration and Mark-up Session Held
- 2026-06-29: Referred to the House Committee on Ways and Means.
- 2026-06-29: Introduced in House
- 2026-06-29: Introduced in House
Bill Versions
- End Tax Penalties on American Hostages Act — issued 2026-06-29 — PDF (9 pages)