S.Amdt. 2499

This amendment aims to help United States nationals who are held hostage abroad or unlawfully and wrongfully detained abroad. Folks who are dealing with these terrible situations often miss tax deadlines simply because they are not free, and this amendment makes sure they are not punished for it by the tax system.

Specifically, the amendment changes the Internal Revenue Code of 1986 to postpone tax deadlines and timelines for hostages and wrongfully detained individuals. Under this change, the time a person is held hostage or wrongfully detained abroad will be completely disregarded when looking at their tax liabilities, tax deadlines, credits, refunds, and any extra interest or penalties.

• The rules for postponing tax actions also apply to the spouses of these individuals.

• The Secretary of State and the Attorney General must provide lists of these detained or hostage individuals to the Treasury Secretary starting by January 1, 2026.

• The Treasury Department must update its databases and information systems to make sure these tax breaks are properly applied.

• If anyone already paid interest, fines, or penalties while they were detained or held hostage, the government must refund that money and cancel those fines.

• The Treasury Secretary must set up a specific program by January 1, 2026, allowing eligible individuals, their spouses, or their dependents to apply for refunds or penalty cancellations for the period running from January 1, 2021, until the date this is enacted.