Sponsors (3)
The bill delivers targeted tax relief and clearer interagency procedures to restore refunds and waive penalties for unlawfully detained Americans, but does so at a measurable fiscal and administrative cost and with a short filing window and some limits on overpayment interest that could leave some claimants worse off.
Unlawfully detained Americans (and their spouses/dependents) can exclude detention time from tax filing deadlines and obtain refunds or abatements of penalties, additions to tax, and interest for tax years Jan 1, 2021 through enactment, restoring money wrongly collected.
Requires interagency coordination and clarifies agency responsibilities (Treasury, State, DOJ, Hostage Recovery Fusion Cell), increasing the likelihood eligible people are identified and notified so relief can be delivered more quickly.
Establishes a clear one-year window to file claims for refunds/abatements after receiving notice, which can speed resolution once people are notified.
Paying refunds and abatements to eligible individuals will increase federal outlays and reduce Treasury revenues available for other programs.
Implementation requires IRS/Treasury IT updates, notices, list compilation, and processing, creating administrative costs and diverting agency resources from other taxpayer services.
The one-year deadline to file after notice could prevent relief for eligible people if notices are delayed or never received, leaving some rightful claimants without remedy.
Based on analysis of 3 sections of legislative text.
Pauses tax deadlines, interest, penalties, and collections for U.S. nationals unlawfully detained or held hostage abroad (and spouses) and creates a refund/abatement program for 1/1/2021 through enactment.
Official title: 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.
Introduced June 29, 2026 by Claudia Tenney · Last progress June 29, 2026
Provides tax relief for U.S. nationals who were unlawfully or wrongfully detained abroad or held hostage by pausing tax deadlines, interest, penalties, and collection while they were detained and by allowing refunds or abatements for certain past taxes and penalties. Extends the same protections to spouses, requires lists of eligible individuals from the State Department and the Hostage Recovery Fusion Cell, and directs Treasury to implement a refund/abatement program with special timing rules covering January 1, 2021 through enactment and going forward.