Washington D.C. – Congressman Don Bacon, September 11, 2024
Reps. Don Bacon (R-NE-02) and Josh Gottheimer (D-NJ-05) have introduced H.R. 9431, the Hostage Private Debt Tax Freedom Act. H.R. 9431 would amend the Internal Revenue Code of 1986 to exclude forgiven debt of individuals who are unlawfully or wrongfully detained abroad. Examples include credit card debt that is forgiven. This would typically be taxed as income.
“Individuals unlawfully detained abroad should not have to endure thousands of dollars of additional income tax when they return,” said Rep. Bacon. “I’ve spoken with members of Paul Whelan’s family who shared his situation with me. Imagine finally being freed and given a grand welcome home, to only have the IRS send you a large tax bill. If a citizen is taken hostage and must report any taxable amount of a canceled debt as ordinary income, this bill would provide some tax relief for those individuals.”
“After being held for days, weeks, and months as hostages by terrorists and our adversaries, facing unimaginable horrors, and making it home, no one should be hit with extra income taxes,” said Rep. Gottheimer. “That’s why I’m proud to lead the Hostage Private Debt Tax Freedom Act with my friend and fellow Problem Solvers Caucus colleague Don Bacon.”
