Source: United States Senator for Delaware Christopher Coons
WASHINGTON – U.S. Senators Chris Coons (D-Del.) and Mike Rounds (R-S.D.) introduced the Stop Tax Penalties on American Hostages Act today to prevent the Internal Revenue Service (IRS) from levying fines and penalties on American hostages and wrongful detainees for late tax payments while they are held abroad. This bill was previously introduced in December 2022 in the 117th Congress.
“Coming home after being held hostage or wrongfully detained abroad, only to find that your own government is penalizing you for being unable to pay your taxes while imprisoned, sounds beyond belief – but it’s a reality for many returning Americans. As soon as I heard of this issue, I became determined to address it through bipartisan, commonsense legislation,” said Senator Coons. “The Stop Tax Penalties on American Hostages Act updates our tax code to ensure that wrongfully detained Americans, American hostages, and their families face one less obstacle as they return home. I will continue my efforts to bring every last wrongfully detained American and American hostage home, and I hope my colleagues will join me in fixing this shameful flaw in the tax code.”
“The IRS continues to prove itself as a bureaucratic agency,” said Senator Rounds. “No U.S. citizen who is wrongfully or unlawfully detained overseas should be subject to penalties levied by the IRS on late federal income tax payments from when they were detained. I am pleased to work with Senator Coons on this bipartisan, commonsense legislation to protect Americans from unnecessary red tape when they return home.”
Americans who are held abroad as hostages or wrongful detainees are fined and charged interest by the IRS in the event of non-payment of taxes while in prison or captivity abroad, as though they had simply chosen not to pay taxes. Senator Coons was alerted to this issue by Jason Rezaian, a Washington Post reporter who was wrongfully detained by the Iranian government for more than a year. Rezaian came home to find that he owed a large sum to the IRS due to non-payment of taxes.
“When I returned home after being held hostage in Iran for 544 days, I faced many unexpected challenges,” said Jason Rezaian. “The one that proved the most difficult to navigate and ultimately the costliest was the massive bill from the IRS that included tens of thousands of dollars in penalties, late fees, and interest that piled up while I was wrongfully detained. The IRS told me, ‘we don’t have a code for removing these charges.’ Well, now they will, thanks to Senator Coons and Senator Rounds.”
“The Bring Our Families Home Campaign supports any action by Congress that prioritizes our Americans held hostage or wrongfully detained abroad, be it related to utilizing all tools necessary to facilitate their release or for the support of their families as they bravely fight for their loved one’s freedom,” said Neda Sharghi, Chief of Steering Committee for the Bring Our Families Home Campaign. “Our campaign commends Senator Coons and Senator Rounds for their Stop Tax Penalties on American Hostages Act and sees this bill as yet another important step in elevating the cases of our American hostages and wrongful detainees.”
“On behalf of all U.S. nationals returning from captivity abroad and the James W. Foley Legacy Foundation, I sincerely commend Senator Coons and Senator Rounds’ leadership and their staff for this bill prohibiting tax penalties for hostages and wrongful detainees, an essential step forward,” said Diane Foley, Founder and President of the James W. Foley Legacy Foundation.
Senator Coons has led legislation supporting hostages and their families, raising awareness about Americans unjustly held abroad, and increasing the urgency to bring home every wrongfully detained American. In March 2023, he introduced bipartisan, bicameral legislation to establish March 9 as the annual National Hostage and Wrongful Detainee Day and create an official Hostage and Wrongful Detainee flag.
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