[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 9495 Introduced in House (IH)]
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118th CONGRESS
2d Session
H. R. 9495
To amend the Internal Revenue Code of 1986 to postpone tax deadlines
and reimburse paid late fees for United States nationals who are
unlawfully or wrongfully detained or held hostage abroad, to terminate
the tax-exempt status of terrorist supporting organizations, and for
other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
September 9, 2024
Ms. Tenney (for herself, Mr. Kustoff, Mr. Schneider, and Ms. Titus)
introduced the following bill; which was referred to the Committee on
Ways and Means
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to postpone tax deadlines
and reimburse paid late fees for United States nationals who are
unlawfully or wrongfully detained or held hostage abroad, to terminate
the tax-exempt status of terrorist supporting organizations, and for
other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Stop Terror-Financing and Tax
Penalties on American Hostages Act''.
SEC. 2. POSTPONEMENT OF TAX DEADLINES FOR HOSTAGES AND INDIVIDUALS
WRONGFULLY DETAINED ABROAD.
(a) In General.--Chapter 77 of the Internal Revenue Code of 1986 is
amended by inserting after section 7510 the following new section:
``SEC. 7511. TIME FOR PERFORMING CERTAIN ACTS POSTPONED FOR HOSTAGES
AND INDIVIDUALS WRONGFULLY DETAINED ABROAD.
``(a) Time To Be Disregarded.--
``(1) In general.--The period during which an applicable
individual was unlawfully or wrongfully detained abroad, or
held hostage abroad, shall be disregarded in determining, under
the internal revenue laws, in respect of any tax liability of
such individual--
``(A) whether any of the acts described in section
7508(a)(1) were performed within the time prescribed
thereof (determined without regard to extension under
any other provision of this subtitle for periods after
the initial date (as determined by the Secretary) on
which such individual was unlawfully or wrongfully
detained abroad or held hostage abroad),
``(B) the amount of any interest, penalty,
additional amount, or addition to the tax for periods
after such date, and
``(C) the amount of any credit or refund.
``(2) Application to spouse.--The provisions of paragraph
(1) shall apply to the spouse of any individual entitled to the
benefits of such paragraph.
``(b) Applicable Individual.--
``(1) In general.--For purposes of this section, the term
`applicable individual' means any individual who is--
``(A) a United States national unlawfully or
wrongfully detained abroad, as determined under section
302 of the Robert Levinson Hostage Recovery and
Hostage-Taking Accountability Act (22 U.S.C. 1741), or
``(B) a United States national taken hostage
abroad, as determined pursuant to the findings of the
Hostage Recovery Fusion Cell (as described in section
304 of the Robert Levinson Hostage Recovery and
Hostage-Taking Accountability Act (22 U.S.C. 1741b)).
``(2) Information provided to treasury.--For purposes of
identifying individuals described in paragraph (1), not later
than January 1, 2025, and annually thereafter--
``(A) the Secretary of State shall provide the
Secretary with a list of the individuals described in
paragraph (1)(A), as well as any other information
necessary to identify such individuals, and
``(B) the Attorney General, acting through the
Hostage Recovery Fusion Cell, shall provide the
Secretary with a list of the individuals described in
paragraph (1)(B), as well as any other information
necessary to identify such individuals.
``(c) Modification of Treasury Databases and Information Systems.--
The Secretary shall ensure that databases and information systems of
the Department of the Treasury are updated as necessary to ensure that
statute expiration dates, interest and penalty accrual, and collection
activities are suspended consistent with the application of subsection
(a).
``(d) Refund and Abatement of Penalties and Fines Imposed Prior to
Identification as Applicable Individual.--In the case of any applicable
individual--
``(1) for whom any interest, penalty, additional amount, or
addition to the tax in respect to any tax liability for any
taxable year ending during the period described in subsection
(a)(1) was assessed or collected, and
``(2) who was, subsequent to such assessment or collection,
determined to be an individual described in subparagraph (A) or
(B) of subsection (b)(1),
the Secretary shall abate any such assessment and refund any amount
collected to such applicable individual in the same manner as any
refund of an overpayment of tax under section 6402.''.
(b) Clerical Amendment.--The table of sections for chapter 77 of
the Internal Revenue Code of 1986 is amended by inserting after the
item relating to section 7510 the following new item:
``Sec. 7511. Time for performing certain acts postponed for hostages
and individuals wrongfully detained
abroad.''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years ending after the date of enactment of this Act.
SEC. 3. REFUND AND ABATEMENT OF PENALTIES AND FINES PAID BY ELIGIBLE
INDIVIDUALS.
(a) In General.--Section 7511 of the Internal Revenue Code of 1986,
as added by section 2, is amended by adding at the end the following
new subsection:
``(e) Refund and Abatement of Penalties and Fines Paid by Eligible
Individuals With Respect to Periods Prior to Date of Enactment of This
Section.--
``(1) In general.--
``(A) Establishment.--Not later than January 1,
2025, the Secretary (in consultation with the Secretary
of State and the Attorney General) shall establish a
program to allow any eligible individual (or the spouse
or any dependent (as defined in section 152) of such
individual) to apply for a refund or an abatement of
any amount described in paragraph (2) (including
interest) to the extent such amount was attributable to
the applicable period.
``(B) Identification of individuals.--Not later
than January 1, 2025, the Secretary of State and the
Attorney General, acting through the Hostage Recovery
Fusion Cell (as described in section 304 of the Robert
Levinson Hostage Recovery and Hostage-Taking
Accountability Act (22 U.S.C. 1741b)), shall--
``(i) compile a list, based on such
information as is available, of individuals who
were applicable individuals during the
applicable period, and
``(ii) provide the list described in clause
(i) to the Secretary.
``(C) Notice.--For purposes of carrying out the
program described in subparagraph (A), the Secretary
(in consultation with the Secretary of State and the
Attorney General) shall, with respect to any individual
identified under subparagraph (B), provide notice to
such individual--
``(i) in the case of an individual who has
been released on or before the date of
enactment of this subsection, not later than 90
days after the date of enactment of this
subsection, or
``(ii) in the case of an individual who is
released after the date of enactment of this
subsection, not later than 90 days after the
date on which such individual is released,
that such individual may be eligible for a refund or an
abatement of any amount described in paragraph (2)
pursuant to the program described in subparagraph (A).
``(D) Authorization.--
``(i) In general.--Subject to clause (ii),
in the case of any refund described in
subparagraph (A), the Secretary shall issue
such refund to the eligible individual in the
same manner as any refund of an overpayment of
tax.
``(ii) Extension of limitation on time for
refund.--With respect to any refund under
subparagraph (A)--
``(I) the 3-year period of
limitation prescribed by section
6511(a) shall be extended until the end
of the 1-year period beginning on the
date that the notice described in
subparagraph (C) is provided to the
eligible individual, and
``(II) any limitation under section
6511(b)(2) shall not apply.
``(2) Eligible individual.--For purposes of this
subsection, the term `eligible individual' means any applicable
individual who, for any taxable year ending during the
applicable period, paid or incurred any interest, penalty,
additional amount, or addition to the tax in respect to any tax
liability for such year of such individual based on a
determination that an act described in section 7508(a)(1) which
was not performed by the time prescribed therefor (without
regard to any extensions).
``(3) Applicable period.--For purposes of this subsection,
the term `applicable period' means the period--
``(A) beginning on January 1, 2021, and
``(B) ending on the date of enactment of this
subsection.''.
(b) Effective Date.--The amendment made by this section shall apply
to taxable years ending on or before the date of enactment of this Act.
SEC. 4. TERMINATION OF TAX-EXEMPT STATUS OF TERRORIST SUPPORTING
ORGANIZATIONS.
(a) In General.--Section 501(p) of the Internal Revenue Code of
1986 is amended by adding at the end the following new paragraph:
``(8) Application to terrorist supporting organizations.--
``(A) In general.--For purposes of this subsection,
in the case of any terrorist supporting organization--
``(i) such organization (and the
designation of such organization under
subparagraph (B)) shall be treated as described
in paragraph (2), and
``(ii) the period of suspension described
in paragraph (3) with respect to such
organization shall be treated as beginning on
the date that the Secretary designates such
organization under subparagraph (B) and ending
on the date that the Secretary rescinds such
designation under subparagraph (D).
``(B) Terrorist supporting organization.--For
purposes of this paragraph, the term `terrorist
supporting organization' means any organization which
is designated by the Secretary as having provided,
during the 3-year period ending on the date of such
designation, material support or resources (within the
meaning of section 2339B of title 18, United States
Code) to an organization described in paragraph (2)
(determined after the application of this paragraph to
such organization) in excess of a de minimis amount.
``(C) Designation procedure.--
``(i) Notice requirement.--Prior to
designating any organization as a terrorist
supporting organization under subparagraph (B),
the Secretary shall mail to the most recent
mailing address provided by such organization
on the organization's annual return or notice
under section 6033 (or subsequent form
indicating a change of address) a written
notice which includes--
``(I) a statement that the
Secretary will designate such
organization as a terrorist supporting
organization unless the organization
satisfies the requirements of subclause
(I) or (II) of clause (ii),
``(II) the name of the organization
or organizations with respect to which
the Secretary has determined such
organization provided material support
or sources as described in subparagraph
(B), and
``(III) a description of such
material support or resources to the
extent consistent with national
security and law enforcement interests.
``(ii) Opportunity to cure.--In the case of
any notice provided to an organization under
clause (i), the Secretary shall, at the close
of the 90-day period beginning on the date that
such notice was sent, designate such
organization as a terrorist supporting
organization under subparagraph (B) if (and
only if) such organization has not (during such
period)--
``(I) demonstrated to the
satisfaction of the Secretary that such
organization did not provide the
material support or resources referred
to in subparagraph (B), or
``(II) made reasonable efforts to
have such support or resources returned
to such organization and certified in
writing to the Secretary that such
organization will not provide any
further support or resources to
organizations described in paragraph
(2).
A certification under subclause (II) shall not
be treated as valid if the organization making
such certification has provided any other such
certification during the preceding 5 years.
``(D) Rescission.--The Secretary shall rescind a
designation under subparagraph (B) if (and only if)--
``(i) the Secretary determines that such
designation was erroneous,
``(ii) after the Secretary receives a
written certification from an organization that
such organization did not receive the notice
described in subparagraph (C)(i)--
``(I) the Secretary determines that
it is reasonable to believe that such
organization did not receive such
notice, and
``(II) such organization satisfies
the requirements of subclause (I) or
(II) of subparagraph (C)(ii)
(determined after taking into account
the last sentence thereof), or
``(iii) the Secretary determines, with
respect to all organizations to which the
material support or resources referred to in
subparagraph (B) were provided, the periods of
suspension under paragraph (3) have ended.
A certification described in the matter preceding
subclause (I) of clause (II) shall not be treated as
valid if the organization making such certification has
provided any other such certification during the
preceding 5 years.
``(E) Administrative review by internal revenue
service independent office of appeals.--In the case of
the designation of an organization by the Secretary as
a terrorist supporting organization under subparagraph
(B), a dispute regarding such designation shall be
subject to resolution by the Internal Revenue Service
Independent Office of Appeals under section 7803(e) in
the same manner as if such designation were made by the
Internal Revenue Service and paragraph (5) of this
subsection did not apply.
``(F) Jurisdiction of united states courts.--
Notwithstanding paragraph (5), the United States
district courts shall have exclusive jurisdiction to
review a final determination with respect to an
organization's designation as a terrorist supporting
organization under subparagraph (B). In the case of any
such determination which was based on classified
information (as defined in section 1(a) of the
Classified Information Procedures Act), such
information may be submitted to the reviewing court ex
parte and in camera. For purposes of this subparagraph,
a determination with respect to an organization's
designation as a terrorist supporting organization
shall not fail to be treated as a final determination
merely because such organization fails to utilize the
dispute resolution process of the Internal Revenue
Service Independent Office of Appeals provided under
subparagraph (E).''.
(b) Effective Date.--The amendment made by this subsection shall
apply to designations made after the date of the enactment of this Act
in taxable years ending after such date.
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