H.R. 1868House119th Congress (2025-2027)In Committee

Stop Tax Penalties on American Hostages Act of 2025

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.

AI-Generated Summary

Updated November 24, 2025 at 2:14 AM UTC

The Stop Tax Penalties on American Hostages Act of 2025 changes the tax code so that U.S. citizens who are illegally detained or taken hostage abroad are not penalized for missing tax deadlines. It also sets up a process for the Treasury to refund any interest, penalties, or extra taxes they paid during that time, extending relief to spouses and dependents. Federal agencies must identify and share the names of affected individuals with the Treasury, which will then adjust its records and notify eligible people of their refund rights.

Key Provisions

Creates a new tax rule that ignores any time a U.S. national is unlawfully detained or held hostage abroad when calculating filing deadlines, interest, penalties, credits, or refunds.
Applies the same relief to the spouse of an affected individual.
Requires the Secretary of State and the Attorney General (through the Hostage Recovery Fusion Cell) to provide the Treasury each year with a list of those detained or taken hostage, so the Treasury can update its systems accordingly.
Mandates the Treasury to refund or cancel any interest, penalties, or additional taxes that were assessed or collected during the period the person was detained, treating those amounts like an overpayment refund.
Establishes a program (by Jan 1 2026) that lets eligible individuals, their spouses or dependents apply for those refunds, with notice required within 90 days of release or enactment, and extends the normal three‑year refund deadline to one year after notice is given.
Defines the “applicable period” for refunds as Jan 1 2021 through the date the law is enacted.

Legislative Activity

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1 earlier action

HouseIntro Referral Latest Action

Referred to the House Committee on Ways and Means.

Ways and Means Committee

March 5, 2025

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HouseIntro Referral

Introduced in House

March 5, 2025

HouseIntro Referral

Referred to the House Committee on Ways and Means.

Ways and Means Committee

March 5, 2025

Floor Debate

1 member

What members said about H.R. 1868 on the floor

1 Republican

Rep. Monica De La CruzR-TX-15 · May 6, 2025

Under clause 7 of rule XII, sponsors were added to public bills and resolutions, as follows: H.R. 116: Ms. Boebert. H.R. 151: Ms. Van Duyne. H.R. 255: Mr. Gill of Texas, Mr. Self, and Ms. Crockett.…

Under clause 7 of rule XII, sponsors were added to public bills and resolutions, as follows:

H.R. 116: Ms. Boebert.

H.R. 151: Ms. Van Duyne.

H.R. 255: Mr. Gill of Texas, Mr. Self, and Ms. Crockett.

H.R. 404: Mr. Wied.

H.R. 429: Mr. Suozzi.

H.R. 479: Ms. Boebert.

H.R. 556: Mr. Wied.

H.R. 574: Mr. Van Drew, Mrs. Miller-Meeks, Mr. Stauber, and

Mr. Fitzpatrick.

H.R. 628: Ms. Davids of Kansas.

H.R. 659: Mr. Soto, Mrs. Ramirez, and Mr. Garcia of

California.

H.R. 740: Ms. Malliotakis and Mr. Kustoff.

H.R. 802: Ms. Bonamici.

H.R. 833: Mr. Hamadeh of Arizona, Mr. Moran, Mr. Barr, and

Mr. Burlison.

H.R. 842: Mr. Kiley of California and Ms. Stansbury.

H.R. 909: Mr. Subramanyam and Ms. Schakowsky.

H.R. 914: Ms. McDonald Rivet.

H.R. 942: Mr. Bresnahan and Ms. Davids of Kansas.

H.R. 956: Mr. Biggs of Arizona.

H.R. 1004: Ms. Elfreth and Ms. Kelly of Illinois.

H.R. 1024: Mr. Moran.

H.R. 1041: Mr. Ezell, Mr. Hurd of Colorado, Mr. Cline, and

Ms. De La Cruz.

H.R. 1086: Mrs. Miller-Meeks.

H.R. 1106: Mr. Himes.

H.R. 1151: Mr. Rose.

H.R. 1181: Ms. Fedorchak.

H.R. 1232: Mr. James and Mr. Pfluger.

H.R. 1241: Ms. Boebert.

H.R. 1262: Mrs. Hinson and Mr. Garamendi.

H.R. 1286: Mrs. Fischbach.

H.R. 1329: Mr. Burchett and Mr. McCaul.

H.R. 1330: Mr. Suozzi.

H.R. 1357: Mr. Morelle.

H.R. 1378: Mr. Rogers of Kentucky and Mr. Garbarino.

H.R. 1400: Ms. Perez.

H.R. 1415: Mr. Schmidt and Mr. Weber of Texas.

H.R. 1505: Mr. Min.

H.R. 1509: Ms. Houlahan, Mr. Carbajal, Ms. Lee of Florida,

and Mr. Fry.

H.R. 1521: Mr. Harder of California.

H.R. 1539: Mr. Bilirakis.

H.R. 1636: Mr. Thompson of Mississippi.

H.R. 1659: Ms. Budzinski.

H.R. 1676: Mr. Haridopolos.

H.R. 1682: Mr. James.

H.R. 1695: Mr. Rutherford.

H.R. 1709: Mr. Nunn of Iowa.

H.R. 1775: Ms. Stansbury.

H.R. 1822: Mr. Owens.

H.R. 1868: Ms. Williams of Georgia.

H.R. 1882: Mr. Gill of Texas.

H.R. 1909: Mr. Wittman.

H.R. 1918: Ms. McBride.

H.R. 2028: Ms. Van Duyne and Ms. McBride.

H.R. 2033: Ms. Malliotakis.

H.R. 2109: Mr. Costa.

H.R. 2126: Mr. Brecheen and Mr. James.

H.R. 2145: Ms. Davids of Kansas.

H.R. 2160: Mr. Schmidt.

H.R. 2189: Mr. Fry.

H.R. 2199: Ms. McBride.

H.R. 2230: Ms. Malliotakis.

H.R. 2253: Mr. Frost.

H.R. 2290: Mr. Garamendi.

H.R. 2294: Ms. McBride.

H.R. 2311: Mr. Jackson of Illinois.

H.R. 2315: Ms. Boebert.

H.R. 2355: Mr. Mann.

H.R. 2395: Ms. Hageman.

H.R. 2514: Ms. Budzinski.

H.R. 2531: Mr. Larson of Connecticut and Ms. Stansbury.

H.R. 2536: Mr. Riley of New York.

H.R. 2538: Ms. Stansbury and Mr. Graves.

H.R. 2550: Mr. Clyburn.

H.R. 2599: Mr. Issa.

H.R. 2623: Mr. Wied.

H.R. 2687: Ms. Pelosi.

H.R. 2705: Mr. Collins and Ms. Boebert.

H.R. 2729: Mr. Stauber, Mr. Rose, Mrs. Radewagen, and Mr.

Peters.

H.R. 2736: Mrs. Sykes.

H.R. 2753: Ms. Chu, Mr. Johnson of Georgia, Ms. Goodlander,

Mr. Meeks, Mr. Courtney, Ms. Escobar, Ms. Dexter, and Mr.

Pocan.

H.R. 2761: Mr. Goldman of New York.

H.R. 2767: Ms. Norton.

H.R. 2781: Mr. Bishop.

H.R. 2788: Mr. Cohen.

H.R. 2841: Ms. Boebert.

H.R. 2904: Mrs. Cherfilus-McCormick.

H.R. 2941: Mr. Krishnamoorthi.

H.R. 2969: Mr. Cline.

H.R. 2979: Mr. Fitzpatrick.

H.R. 3033: Mr. Pfluger.

H.R. 3036: Mr. Takano.

H.R. 3043: Mr. McGuire.

H.R. 3048: Mr. Fitzpatrick.

H.R. 3098: Mr. Correa.

H.R. 3107: Mr. Bishop.

H.R. 3112: Ms. Perez, Mr. Peters, Mrs. Cherfilus-McCormick,

and Mr. Sherman.

H.R. 3128: Ms. Sewell.

H.R. 3131: Mr. Rogers of Kentucky.

H.R. 3142: Mr. Bacon.

H.R. 3177: Mr. Steube.

H.R. 3179: Ms. Van Duyne and Mr. Self.

H.R. 3195: Mr. Rogers of Alabama.

H.R. 3199: Ms. Omar, Ms. Meng, Mr. Boyle of Pennsylvania,

Mr. Mullin, and Mr. Sherman.

H.R. 3204: Mr. Neguse.

H.J. Res. 38: Mr. Steube.

H. Res. 155: Ms. Pingree.

H. Res. 166: Ms. Norton.

H. Res. 267: Mr. Davis of Illinois, Mr. Garcia of

California, Mr. Thompson of Mississippi, Ms. McClellan, Mr.

Bacon, Mr. Torres of New York, Mrs. Hayes, Ms. Ansari, Ms.

Tlaib, Ms. Stansbury, Mr. Johnson of Georgia, Ms. Titus, Mr.

Soto, and Mr. Fields.

H. Res. 364: Mr. Thompson of Pennsylvania, Ms. Malliotakis,

Mr. Fallon, and Mr. Kustoff.

H. Res. 380: Mr. Pocan, Mr. Thanedar, Ms. McCollum, and Ms.

Tokuda.

Bill Text

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Introduced in HouseIssued March 5, 2025

119th CONGRESS

1st Session

H. R. 1868

IN THE HOUSE OF REPRESENTATIVES

March 5, 2025

Mr. Hill of Arkansas (for himself, Ms. Titus, Ms. Tenney, and Mr. Beyer) introduced the following bill; which was referred to the Committee on Ways and Means

A BILL

Short title

This Act may be cited as the Stop Tax Penalties on American Hostages Act of 2025.

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.

(3)

Special rule for overpayments

The rules of section 7508(b) shall apply for purposes of this section.

(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, 2026, 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 update, as necessary, any database or information system of the Department of the Treasury in order to ensure that the provisions of subsection (a) are applied with respect to each applicable individual.

(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.

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:

(d)

Refund and abatement of penalties and fines paid by eligible individuals

(1)

In general

(A)

Establishment

Not later than January 1, 2026, 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, 2026, 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.