Pauses IRS deadlines and penalties for U.S. nationals who were wrongfully detained or held hostage abroad, and for their spouses, by ignoring the time they were detained when judging if filings or payments were late. It also allows refunds of penalties, interest, or fines already paid for missed deadlines during a set past period.

Agencies must coordinate to identify eligible people and notify them. The State Department and Attorney General must give Treasury lists of eligible individuals by January 1, 2026, and Treasury must update its systems. Refund claims can reach back to January 1, 2021 through the date this becomes law, with extended time to file claims.