Washington D.C. – Senator Chris Coons, February 20, 2025
U.S. Senators Chris Coons (D-Del.) and Mike Rounds (R-S.D.) reintroduced the Stop Tax Penalties on American Hostages Act today to prevent the Internal Revenue Service (IRS) from imposing fines or penalties on American hostages and wrongful detainees for late tax payments while they are held abroad. In addition to Senators Coons and Rounds, this legislation is co-sponsored by Senators Thom Tillis (R-N.C.), Ron Wyden (D-Ore.), Bill Cassidy, M.D. (R-La.), Chris Van Hollen (D-Md.), Rick Scott (R-Fla.), John Fetterman (D-Pa.), and Dave McCormick (R-Pa.). This bill was originally introduced in December 2022, and the Senate unanimously cleared the bill last year.
“When you return to the United States after being held hostage or wrongfully detained overseas, the first thing that you should get from your government is a ‘welcome home.’ Instead, it’s usually a fine from the IRS for failing to pay your taxes while you sat in a foreign jail,” said Senator Coons. “This bipartisan legislation will fix a glaring flaw in our tax code to ensure that Americans who have already been through the unthinkable do not face thousands of dollars in fines and late fees from the IRS for non-payment of taxes. As we continue our work to bring home every wrongfully detained American, I encourage my colleagues to once again advance this bill and ensure we don’t make their re-entry to our country harder than it already is.”
