Christopher Coons (D-DE)
Stop Tax Penalties on American Hostages Act of 2025
A Democratic bill with 6 Republican cosponsors · See all 9 cosponsors
Last activity — Read twice and referred to the Committee on Finance.
In committee
Introduced and handed to a committee in the chamber it started in.
The committee holds it, and most bills are never heard from again. A hearing or a committee vote would be news; silence is the usual outcome, and it kills the bill without anyone voting against it.
Its path through Congress
- Introduced
- In Committee
What this bill would do
This bill is known as the Stop Tax Penalties on American Hostages Act of 2025. It changes the tax rules to help United States nationals who are unlawfully or wrongfully detained or held hostage abroad. The legislation postpones tax deadlines for these individuals and their spouses during the time they are held. It also requires the government to refund or cancel late fees, interest, and penalties charged during their detention. Additionally, the bill sets up a specific program to handle refunds and notice procedures for eligible individuals and their families.
Yes· 3 of 5
- Scored +5
Does this cut taxes for middle-income families?
The bill provides tax relief by postponing deadlines and refunding penalties for individuals detained or held hostage.
- Scored +4
Would middle-income households be better off under this?
The bill provides financial relief by refunding penalties and interest for affected US nationals.
- Scored +3
Would households on low incomes be better off under this?
The bill protects individuals from the burden of tax interest and penalties incurred during detention.
The opposite
- Scored -2
Does this reduce what the federal government spends?
The bill requires the government to issue refunds and abatements for tax penalties and interest.
Who it would affect, and how
Potential Positive Impacts for People
-
Postponement of Tax Deadlines: Under Section 2 (adding new section 7511(a) to the Internal Revenue Code), the time a U.S. national is wrongfully detained or held hostage abroad is completely disregarded when determining tax deadlines and tax liabilities. This ensures that detained individuals do not face tax penalties for missing deadlines while they are held captive, and this relief also applies to their spouses.
-
Refunds and Cancellation of Past Penalties: Under Section 2 (adding new section 7511(d)) and Section 3 (adding new section 7511(d) regarding eligible individuals), the government is required to refund any interest, penalties, or fines that were already assessed, collected, or paid by eligible individuals or their dependents for taxable years ending on or after January 1, 2021. This provides direct financial relief to those who were unfairly burdened with tax penalties while dealing with captivity.
-
Application and Notice Program: Under Section 3 (adding new section 7511(d)(1)(A) and (C)), the Treasury Secretary, along with the Secretary of State and the Attorney General, must establish a formal application program and provide direct notice to released individuals within 90 days. This ensures that victims and their families are actually informed about their eligibility for refunds and are given an extended window of time to claim their money back.
Potential Negative Impacts for People
Based on the explicit text of the bill, there are no sections or provisions identified that create negative consequences, burdens, or adverse outcomes for individuals or groups of people in the United States.
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Tap or hover a score for the reason it gave.
- Demographic And Interest Groups
- Would middle-income households be better off under this? — The bill provides financial relief by refunding penalties and interest for affected US nationals. Would households on low incomes be better off under this? — The bill protects individuals from the burden of tax interest and penalties incurred during detention.
- Economy And Finance
- Does this cut taxes for middle-income families? — The bill provides tax relief by postponing deadlines and refunding penalties for individuals detained or held hostage. Does this reduce what the federal government spends? — The bill requires the government to issue refunds and abatements for tax penalties and interest.
- Governance And Ideology
- Does this make what the government does easier for the public to see? — The bill mandates coordination between the Secretary of State, Attorney General, and Treasury to identify eligible individuals.
- Social Issues And Justice
- Is this likely to lift people out of poverty? — The bill helps mitigate the financial impact of tax penalties on individuals facing difficult circumstances.
- 2/24/2025
- 1 Cosponsor added.
- 2/20/2025
- Read twice and referred to the Committee on Finance.
- 8 Cosponsors added.
- Introduced in Senate
4 bills Congress.gov lists as related to this one — companions in the other chamber, earlier versions, and bills this one absorbed or was folded into.
Susan CollinsRepublican · Maine
Bill CassidyRepublican · Louisiana
John FettermanDemocrat · Pennsylvania
David McCormickRepublican · Pennsylvania
Mike RoundsRepublican · South Dakota
Rick ScottRepublican · Florida
Thomas TillisRepublican · North Carolina
Chris Van HollenDemocrat · Maryland
Ron WydenDemocrat · Oregon