H.R. 9495House118th Congress (2023-2025)Passed House

Stop Terror-Financing and Tax Penalties on American Hostages Act

Introduced September 9, 2024

AI-Generated Summary

Updated January 20, 2026 at 6:39 PM UTC

The Stop Terror‑Financing and Tax Penalties on American Hostages Act gives U.S. nationals who are unlawfully detained or held hostage abroad tax relief. It pauses tax‑related deadlines, refunds penalties and interest incurred during captivity, and removes tax‑exempt status from organizations that support terrorism.

Key Provisions

  • Tax deadlines, interest, penalties and credit calculations are ignored for the period a person is detained or held hostage, and the same relief extends to the spouse.
  • The Treasury must update its systems, and a program is created (by Jan 1 2025) for eligible individuals or their dependents to apply for refunds or penalty abatements for taxes paid during the captivity period (Jan 1 2021‑enactment).
  • The Secretary of State and the Attorney General must provide annual lists of affected individuals to the Treasury to trigger the relief provisions.
  • Section 501(p) is amended so any organization the Secretary designates as a “terrorist supporting organization” loses its tax‑exempt status, with a 90‑day notice‑and‑cure process, an appeal route through the IRS Office of Appeals, and district‑court review.

Legislative Activity

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22 earlier actions
SenateIntro Referral Latest Action

Received in the Senate.

December 2, 2024

View full timeline
HouseIntro Referral

Introduced in House

September 9, 2024

HouseIntro Referral

Referred to the House Committee on Ways and Means.

September 9, 2024

HouseCommittee

Committee Consideration and Mark-up Session Held

September 11, 2024

HouseCommittee

Ordered to be Reported in the Nature of a Substitute (Amended) by the Yeas and Nays: 38 - 0.

September 11, 2024

HouseCommittee

Reported (Amended) by the Committee on Ways and Means. H. Rept. 118-729.

November 8, 2024

HouseCalendars

Placed on the Union Calendar, Calendar No. 616.

November 8, 2024

HouseFloor

Mr. Smith (MO) moved to suspend the rules and pass the bill, as amended.

November 12, 2024 • 5:31 PM

HouseFloor

Considered under suspension of the rules. (consideration: CR H5931-5937; text: CR H5931-5933)

November 12, 2024 • 5:31 PM

HouseFloor

DEBATE - The House proceeded with forty minutes of debate on H.R. 9495.

November 12, 2024 • 5:31 PM

HouseFloor

At the conclusion of debate, the chair put the question on the motion to suspend the rules. Mr. Doggett objected to the vote on the grounds that a quorum was not present. Further proceedings on the motion were postponed. The point of no quorum was considered as withdrawn.

November 12, 2024 • 6:07 PM

HouseFloor

Considered as unfinished business. (consideration: CR H5948)

November 12, 2024 • 7:22 PM

HouseFloor

Failed of passage/not agreed to in House On motion to suspend the rules and pass the bill, as amended Failed by the Yeas and Nays: (2/3 required): 256 - 145 (Roll no. 458).

November 12, 2024 • 7:31 PM

HouseFloor

On motion to suspend the rules and pass the bill, as amended Failed by the Yeas and Nays: (2/3 required): 256 - 145 (Roll no. 458).

November 12, 2024 • 7:31 PM

HouseFloor

Rules Committee Resolution H. Res. 1576 Reported to House. Rule provides for consideration of H.R. 1449 and H.R. 9495. The resolution provides for consideration of H.R. 1449 under a structured rule and H.R. 9495 under a closed rule. The resolution provides for one hour of general debate and one motion to recommit on each bill.

November 18, 2024 • 5:49 PM

HouseFloor

Rule H. Res. 1576 passed House.

November 19, 2024 • 2:06 PM

HouseFloor

Considered under the provisions of rule H. Res. 1576. (consideration: CR H6159-6168)

November 21, 2024 • 9:17 AM

HouseFloor

Rule provides for consideration of H.R. 1449 and H.R. 9495. The resolution provides for consideration of H.R. 1449 under a structured rule and H.R. 9495 under a closed rule. The resolution provides for one hour of general debate and one motion to recommit on each bill.

November 21, 2024 • 9:17 AM

HouseFloor

DEBATE - The House proceeded with one hour of debate on H.R. 9495.

November 21, 2024 • 9:17 AM

HouseFloor

The previous question was ordered pursuant to the rule.

November 21, 2024 • 10:24 AM

HouseFloor

Passed/agreed to in House: On passage Passed by the Yeas and Nays: 219 - 184 (Roll no. 477). (text of amendment in the nature of a substitute: CR H6159-6160)

November 21, 2024 • 10:50 AM

HouseFloor

On passage Passed by the Yeas and Nays: 219 - 184 (Roll no. 477). (text of amendment in the nature of a substitute: CR H6159-6160)

November 21, 2024 • 10:50 AM

HouseFloor

Motion to reconsider laid on the table Agreed to without objection.

November 21, 2024 • 10:50 AM

SenateIntro Referral

Received in the Senate.

December 2, 2024

Floor Debate

19 members

What members said about H.R. 9495 on the floor

9 Republicans10 Democrats
Jason Smith
Rep. Jason SmithR-MO-8 · Nov 21, 2024

Mr. Speaker, pursuant to House Resolution 1576, I call up the bill (H.R. 9495) to amend the Internal Revenue Code of 1986 to postpone tax deadlines and reimburse paid late fees for United States…

Lloyd Doggett
Rep. Lloyd DoggettD-TX-37 · Nov 21, 2024

Mr. Speaker, I yield myself 4 minutes. Mr. Speaker, this is a death penalty bill that we are considering today, a bill that empowers Donald Trump to extinguish the life of any nonprofit, of any civic…

James P. McGovern
Rep. James P. McGovernD-MA-2 · Nov 19, 2024

Mr. Speaker, I yield myself such time as I may consume, and I thank the gentlewoman from Minnesota for yielding me the customary 30 minutes. Mr. Speaker, H.R. 1449, the Committing Leases for Energy…

Lloyd Doggett
Rep. Lloyd DoggettD-TX-37 · Nov 12, 2024

Mr. Speaker, I yield myself 4 minutes. Mr. Speaker, this bill authorizes Donald Trump to recklessly impose a death penalty on any nonprofit in America that happens to be on his enemies list. With…

Betty McCollum
Rep. Betty McCollumD-MN-4 · Nov 14, 2024

Mr. Speaker, I rise in opposition to H.R. 9495, the Stop Terror-Financing and Tax Penalties on American Hostages Act. This legislation would grant the Secretary of the Treasury the unilateral…

Show 8 more
Michelle Fischbach
Rep. Michelle FischbachR-MN-7 · Nov 19, 2024

Mr. Speaker, by direction of the Committee on Rules, I call up House Resolution 1576 and ask for its immediate consideration. Mr. Speaker, for the purpose of debate only, I yield the customary 30…

Jason Smith
Rep. Jason SmithR-MO-8 · Nov 12, 2024

Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 9495) to amend the Internal Revenue Code of 1986 to postpone tax deadlines and reimburse paid late fees for United States nationals…

Mark Takano
Rep. Mark TakanoD-CA-39 · Nov 12, 2024

Mr. Speaker, I rise in strong opposition to H.R. 9495, the so-called Stop Terror-Financing and Tax Penalties on American Hostages Act. This legislation would grant the President-elect unilateral…

Claudia Tenney
Rep. Claudia TenneyR-NY-24 · Nov 21, 2024

Mr. Speaker, I rise in support of my bill, H.R. 9495, the Stop-Terror Financing and Tax Penalties on American Hostages Act, which has been the subject of political hysteria since the election of…

Jamie Raskin
Rep. Jamie RaskinD-MD-8 · Nov 21, 2024

Mr. Speaker, I thank the distinguished gentleman from Texas for yielding. Mr. Speaker, I had a law professor who once asked the class: What are the two most beautiful words in the English language?…

Lloyd Smucker
Rep. Lloyd SmuckerR-PA-11 · Nov 21, 2024

Mr. Speaker, what we are witnessing on the floor today is, I believe, one of the most bizarre arguments against a bill that I have seen since I have been here in my 8 years in Congress. In fact, look…

David Kustoff
Rep. David KustoffR-TN-8 · Nov 21, 2024

Mr. Speaker, I rise today in strong support of H.R. 9495, the bill titled the Stop Terror-Financing and Tax Penalties on American Hostages Act. I am proud that it is a bipartisan bill. In my opinion,…

Donald S. Beyer, Jr.
Rep. Donald S. Beyer, Jr.D-VA-8 · Nov 21, 2024

Mr. Speaker, I also stand in opposition to this bill, which would provide the administration sweeping, unilateral authority to designate nonprofits as terror-supporting organizations and strip them…

Show 11 more
Claudia Tenney
Rep. Claudia TenneyR-NY-24 · Nov 12, 2024

Mr. Speaker, I rise in support of Stop Terror-Financing and Tax Penalties on American Hostages Act, H.R. 9495. The intent of this bill is simple, no American who has suffered the injustice of…

Judy Chu
Rep. Judy ChuD-CA-28 · Nov 21, 2024

Mr. Speaker, I rise in strong opposition to H.R. 9495, legislation that would grant dangerous new powers to allow the incoming administration to target its political enemies. Crucially, it is already…

Donald S. Beyer, Jr.
Rep. Donald S. Beyer, Jr.D-VA-8 · Nov 12, 2024

Mr. Speaker, I also stand in opposition to H.R. 9495, which would provide this administration and any future administration with sweeping, unilateral authority to designate nonprofits as terror-…

John Joyce
Rep. John JoyceR-PA-13 · Nov 19, 2024

Mr. Speaker, over the past several years, there has been a sharp increase in hostile and adversarial nations kidnapping American citizens and holding them for ransom. While these Americans are being…

Pramila Jayapal
Rep. Pramila JayapalD-WA-7 · Nov 21, 2024

Mr. Speaker, I rise in strong opposition to this bill, which would give Donald Trump, and any future President, unfettered power to punish civil society groups, news outlets, hospitals, and…

Ron Estes
Rep. Ron EstesR-KS-4 · Nov 21, 2024

Mr. Speaker, I rise today in strong support of a commonsense bill that should receive unanimous support in the Chamber today, H.R. 9495, the Stop Terror-Financing and Tax Penalties on American…

Mark Takano
Rep. Mark TakanoD-CA-39 · Nov 21, 2024

Mr. Speaker, I rise in strong opposition to H.R. 9495. As Members of Congress, it is our duty to stand against terrorism and stand up for our common values, but this bill does neither. What does it…

J. French Hill
Rep. J. French HillR-AR-2 · Nov 12, 2024

Mr. Speaker, I rise today in strong support of Rep. Tenney's H.R. 9495, the Stop Terror-Financing and Tax Penalties on American Hostages Act, which will address a profound injustice faced by…

Aaron Bean
Rep. Aaron BeanR-FL-4 · Nov 21, 2024

Mr. Speaker, common sense will tell Members that an American held hostage overseas probably is not going to get a chance to file their taxes. Common sense, Mr. Speaker, will tell my colleagues that…

Cori Bush
Rep. Cori BushD-MO-1 · Nov 21, 2024

Mr. Speaker, St. Louis and I rise in opposition to H.R. 9495. Mr. Speaker, what we are witnessing today is straight out of a comic book, the part where the villain's origin story turns into a revenge…

Rashida Tlaib
Rep. Rashida TlaibD-MI-12 · Nov 21, 2024

Mr. Speaker, this is going to be my third time voting against this bill because I don't care who the President of the United States is. This is a dangerous and unconstitutional bill that would allow…

Bill Text

4 versions available

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Latest
Received in SenateIssued December 2, 2024

II

118th CONGRESS

2d Session

H. R. 9495

IN THE SENATE OF THE UNITED STATES

December 2, 2024

Received

AN ACT

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, to terminate the tax-exempt status of terrorist supporting organizations, and for other purposes.


1.

Short title

This Act may be cited as the Stop Terror-Financing and Tax Penalties on American Hostages Act.

2.

Postponement of tax deadlines for hostages and individuals wrongfully detained abroad

(a)

In general

Chapter 77 of the Internal Revenue Code of 1986 is amended by inserting after section 7510 the following new section:

7511.

Time for performing certain acts postponed for hostages and individuals wrongfully detained abroad

(a)

Time To be disregarded

(1)

In general

The period during which an applicable individual was unlawfully or wrongfully detained abroad, or held hostage abroad, shall be disregarded in determining, under the internal revenue laws, in respect of any tax liability of such individual—

(A)

whether any of the acts described in section 7508(a)(1) were performed within the time prescribed thereof (determined without regard to extension under any other provision of this subtitle for periods after the initial date (as determined by the Secretary) on which such individual was unlawfully or wrongfully detained abroad or held hostage abroad),

(B)

the amount of any interest, penalty, additional amount, or addition to the tax for periods after such date, and

(C)

the amount of any credit or refund.

(2)

Application to spouse

The provisions of paragraph (1) shall apply to the spouse of any individual entitled to the benefits of such paragraph.

(b)

Applicable individual

(1)

In general

For purposes of this section, the term applicable individual means any individual who is—

(A)

a United States national unlawfully or wrongfully detained abroad, as determined under section 302 of the Robert Levinson Hostage Recovery and Hostage-Taking Accountability Act (22 U.S.C. 1741), or

(B)

a United States national taken hostage abroad, as determined pursuant to the findings of the Hostage Recovery Fusion Cell (as described in section 304 of the Robert Levinson Hostage Recovery and Hostage-Taking Accountability Act (22 U.S.C. 1741b)).

(2)

Information provided to Treasury

For purposes of identifying individuals described in paragraph (1), not later than January 1, 2025, and annually thereafter—

(A)

the Secretary of State shall provide the Secretary with a list of the individuals described in paragraph (1)(A), as well as any other information necessary to identify such individuals, and

(B)

the Attorney General, acting through the Hostage Recovery Fusion Cell, shall provide the Secretary with a list of the individuals described in paragraph (1)(B), as well as any other information necessary to identify such individuals.

(c)

Modification of Treasury databases and information systems

The Secretary shall ensure that databases and information systems of the Department of the Treasury are updated as necessary to ensure that statute expiration dates, interest and penalty accrual, and collection activities are suspended consistent with the application of subsection (a).

(d)

Refund and abatement of penalties and fines imposed prior to identification as applicable individual

In the case of any applicable individual—

(1)

for whom any interest, penalty, additional amount, or addition to the tax in respect to any tax liability for any taxable year ending during the period described in subsection (a)(1) was assessed or collected, and

(2)

who was, subsequent to such assessment or collection, determined to be an individual described in subparagraph (A) or (B) of subsection (b)(1),

the Secretary shall abate any such assessment and refund any amount collected to such applicable individual in the same manner as any refund of an overpayment of tax under section 6402.

.

(b)

Clerical amendment

The table of sections for chapter 77 of the Internal Revenue Code of 1986 is amended by inserting after the item relating to section 7510 the following new item:

Sec. 7511. Time for performing certain acts postponed for hostages and individuals wrongfully detained abroad.

.

(c)

Effective date

The amendments made by this section shall apply to taxable years ending after the date of enactment of this Act.

3.

Refund and abatement of penalties and fines paid by eligible individuals

(a)

In general

Section 7511 of the Internal Revenue Code of 1986, as added by section 2, is amended by adding at the end the following new subsection:

(e)

Refund and abatement of penalties and fines paid by eligible individuals with respect to periods prior to date of enactment of this section

(1)

In general

(A)

Establishment

Not later than January 1, 2025, the Secretary (in consultation with the Secretary of State and the Attorney General) shall establish a program to allow any eligible individual (or the spouse or any dependent (as defined in section 152) of such individual) to apply for a refund or an abatement of any amount described in paragraph (2) (including interest) to the extent such amount was attributable to the applicable period.

(B)

Identification of individuals

Not later than January 1, 2025, the Secretary of State and the Attorney General, acting through the Hostage Recovery Fusion Cell (as described in section 304 of the Robert Levinson Hostage Recovery and Hostage-Taking Accountability Act (22 U.S.C. 1741b)), shall—

(i)

compile a list, based on such information as is available, of individuals who were applicable individuals during the applicable period, and

(ii)

provide the list described in clause (i) to the Secretary.

(C)

Notice

For purposes of carrying out the program described in subparagraph (A), the Secretary (in consultation with the Secretary of State and the Attorney General) shall, with respect to any individual identified under subparagraph (B), provide notice to such individual—

(i)

in the case of an individual who has been released on or before the date of enactment of this subsection, not later than 90 days after the date of enactment of this subsection, or

(ii)

in the case of an individual who is released after the date of enactment of this subsection, not later than 90 days after the date on which such individual is released,

that such individual may be eligible for a refund or an abatement of any amount described in paragraph (2) pursuant to the program described in subparagraph (A).
(D)

Authorization

(i)

In general

Subject to clause (ii), in the case of any refund described in subparagraph (A), the Secretary shall issue such refund to the eligible individual in the same manner as any refund of an overpayment of tax.

(ii)

Extension of limitation on time for refund

With respect to any refund under subparagraph (A)—

(I)

the 3-year period of limitation prescribed by section 6511(a) shall be extended until the end of the 1-year period beginning on the date that the notice described in subparagraph (C) is provided to the eligible individual, and

(II)

any limitation under section 6511(b)(2) shall not apply.

(2)

Eligible individual

For purposes of this subsection, the term eligible individual means any applicable individual who, for any taxable year ending during the applicable period, paid or incurred any interest, penalty, additional amount, or addition to the tax in respect to any tax liability for such year of such individual based on a determination that an act described in section 7508(a)(1) which was not performed by the time prescribed therefor (without regard to any extensions).

(3)

Applicable period

For purposes of this subsection, the term applicable period means the period—

(A)

beginning on January 1, 2021, and

(B)

ending on the date of enactment of this subsection.

.

(b)

Effective date

The amendment made by this section shall apply to taxable years ending on or before the date of enactment of this Act.

4.

Termination of tax-exempt status of terrorist supporting organizations

(a)

In general

Section 501(p) of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph:

(8)

Application to terrorist supporting organizations

(A)

In general

For purposes of this subsection, in the case of any terrorist supporting organization—

(i)

such organization (and the designation of such organization under subparagraph (B)) shall be treated as described in paragraph (2), and

(ii)

the period of suspension described in paragraph (3) with respect to such organization shall be treated as beginning on the date that the Secretary designates such organization under subparagraph (B) and ending on the date that the Secretary rescinds such designation under subparagraph (D).

(B)

Terrorist supporting organization

For purposes of this paragraph, the term terrorist supporting organization means any organization which is designated by the Secretary as having provided, during the 3-year period ending on the date of such designation, material support or resources (within the meaning of section 2339B of title 18, United States Code) to an organization described in paragraph (2) (determined after the application of this paragraph to such organization) in excess of a de minimis amount.

(C)

Designation procedure

(i)

Notice requirement

Prior to designating any organization as a terrorist supporting organization under subparagraph (B), the Secretary shall mail to the most recent mailing address provided by such organization on the organization’s annual return or notice under section 6033 (or subsequent form indicating a change of address) a written notice which includes—

(I)

a statement that the Secretary will designate such organization as a terrorist supporting organization unless the organization satisfies the requirements of subclause (I) or (II) of clause (ii),

(II)

the name of the organization or organizations with respect to which the Secretary has determined such organization provided material support or sources as described in subparagraph (B), and

(III)

a description of such material support or resources to the extent consistent with national security and law enforcement interests.

(ii)

Opportunity to cure

In the case of any notice provided to an organization under clause (i), the Secretary shall, at the close of the 90-day period beginning on the date that such notice was sent, designate such organization as a terrorist supporting organization under subparagraph (B) if (and only if) such organization has not (during such period)—

(I)

demonstrated to the satisfaction of the Secretary that such organization did not provide the material support or resources referred to in subparagraph (B), or

(II)

made reasonable efforts to have such support or resources returned to such organization and certified in writing to the Secretary that such organization will not provide any further support or resources to organizations described in paragraph (2).

A certification under subclause (II) shall not be treated as valid if the organization making such certification has provided any other such certification during the preceding 5 years.
(D)

Rescission

The Secretary shall rescind a designation under subparagraph (B) if (and only if)—

(i)

the Secretary determines that such designation was erroneous,

(ii)

after the Secretary receives a written certification from an organization that such organization did not receive the notice described in subparagraph (C)(i)—

(I)

the Secretary determines that it is reasonable to believe that such organization did not receive such notice, and

(II)

such organization satisfies the requirements of subclause (I) or (II) of subparagraph (C)(ii) (determined after taking into account the last sentence thereof), or

(iii)

the Secretary determines, with respect to all organizations to which the material support or resources referred to in subparagraph (B) were provided, the periods of suspension under paragraph (3) have ended.

A certification described in the matter preceding subclause (I) of clause (II) shall not be treated as valid if the organization making such certification has provided any other such certification during the preceding 5 years.
(E)

Administrative review by Internal Revenue Service Independent Office of Appeals

In the case of the designation of an organization by the Secretary as a terrorist supporting organization under subparagraph (B), a dispute regarding such designation shall be subject to resolution by the Internal Revenue Service Independent Office of Appeals under section 7803(e) in the same manner as if such designation were made by the Internal Revenue Service and paragraph (5) of this subsection did not apply.

(F)

Jurisdiction of United States courts

Notwithstanding paragraph (5), the United States district courts shall have exclusive jurisdiction to review a final determination with respect to an organization’s designation as a terrorist supporting organization under subparagraph (B). In the case of any such determination which was based on classified information (as defined in section 1(a) of the Classified Information Procedures Act), such information may be submitted to the reviewing court ex parte and in camera. For purposes of this subparagraph, a determination with respect to an organization’s designation as a terrorist supporting organization shall not fail to be treated as a final determination merely because such organization fails to utilize the dispute resolution process of the Internal Revenue Service Independent Office of Appeals provided under subparagraph (E).

.

(b)

Effective date

The amendment made by this section shall apply to designations made after the date of the enactment of this Act in taxable years ending after such date.

Passed the House of Representatives November 21, 2024.

Kevin F. McCumber,

Clerk.