S.655 - Stop Tax Penalties on American Hostages Act of 2025 (119th Congress)
Summary
S.655, the "Stop Tax Penalties on American Hostages Act of 2025," aims to amend the Internal Revenue Code to provide tax relief to U.S. nationals unlawfully or wrongfully detained or held hostage abroad. The bill allows for postponement of tax deadlines and reimbursement of late fees paid by these individuals and their spouses. It directs the Secretary of State and the Attorney General to identify eligible individuals and notify them of their eligibility for refunds and abatements.
Expected Effects
The Act will postpone tax deadlines and reimburse paid late fees for US nationals held hostage or wrongfully detained abroad. This will require coordination between the Department of Treasury, State Department, and the Attorney General. It also establishes a program for refunds and abatements of penalties and fines paid during the period of detention.
Potential Benefits
- Provides financial relief to individuals and families affected by wrongful detention or hostage situations.
- Ensures that tax burdens are not compounded during periods of captivity.
- Offers a mechanism for reimbursement of penalties and fines already paid.
- Requires inter-agency cooperation to identify and assist eligible individuals.
- Extends the statute of limitations for refunds, providing more time for claims.
Potential Disadvantages
- Potential for administrative burden in identifying and processing claims.
- Possible delays in implementation due to inter-agency coordination requirements.
- The retroactive nature of the refund program could present logistical challenges.
- The cost of the program is not explicitly addressed in the bill.
- Could create a perception of unequal treatment compared to other taxpayers facing hardship.
Constitutional Alignment
The bill aligns with the Constitution's general welfare clause (Preamble) by providing relief to a specific vulnerable group of citizens. It does not appear to infringe upon any specific constitutional right or limitation. The power to tax and spend for the general welfare is a broad power granted to Congress.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).