Stop Tax Penalties on American Hostages Act of 2025

This bill changes federal tax rules to protect U.S. nationals who are unlawfully or wrongfully detained or held hostage overseas. It would delay their tax deadlines and allow them to get back any late fees they had to pay because of their detention. In short, people stuck abroad in these situations wouldn’t be punished by the tax system for missing deadlines they couldn’t meet.

It adds a new rule in the tax code that postpones required tax actions for these individuals while they are detained or held hostage.

• Who is affected: U.S. nationals who are wrongfully detained or held hostage outside the United States.
• What changes: Tax deadlines are pushed back, and any late fees paid during that time can be reimbursed.
• When: During the period they are detained or held hostage abroad.