[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 1679 Introduced in Senate (IS)]

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118th CONGRESS
  1st Session
                                S. 1679

 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, and for other 
                               purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              May 18, 2023

 Mr. Coons (for himself and Mr. Rounds) introduced the following bill; 
     which was read twice and referred to the Committee on Finance

_______________________________________________________________________

                                 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, 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 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) In General.--Any applicable individual shall be entitled to 
the benefits of section 7508 in the same manner as if such individual 
was performing services described in subsection (a) of such section for 
any period in which such individual was--
            ``(1) unlawfully or wrongfully detained abroad, or
            ``(2) held hostage abroad.
    ``(b) Applicable Individual.--
            ``(1) In general.--For purposes of this section, the term 
        `applicable individual' means any individual who is--
                    ``(A) included on the list of United States 
                nationals unlawfully or wrongfully detained that is 
                included in the annual report required under section 
                302(c) of the Robert Levinson Hostage Recovery and 
                Hostage-Taking Accountability Act (22 U.S.C. 1741(c)), 
                or
                    ``(B) a United States national taken hostage 
                abroad, as determined in a manner consistent with 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, 2024, and annually thereafter--
                    ``(A) the Secretary of State shall provide the 
                Secretary with the report described in paragraph 
                (1)(A), as well as any other information necessary to 
                identify the individuals described in such report, 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) Application to Spouse.--The provisions of this section shall 
apply to the spouse of any individual entitled to the benefits of 
subsection (a).''.
    (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. REIMBURSEMENT AND ABATEMENT OF PENALTIES AND FINES PAID BY 
              ELIGIBLE INDIVIDUALS.

    (a) In General.--
            (1) Establishment.--Not later than January 1, 2024, 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 the Internal Revenue Code of 1986) of such 
        individual) to apply for reimbursement or abatement of any 
        amount described in subsection (b) (including interest) to the 
        extent such amount was attributable to the applicable period.
            (2) Notice.--For purposes of carrying out the program 
        described in paragraph (1), the Secretary (in consultation with 
        the Secretary of State and the Attorney General) shall, with 
        respect to any individual identified under subsection (c), 
        provide notice to such individual--
                    (A) in the case of an individual who has been 
                released on or before the date of enactment of this 
                Act, not later than 90 days after the date of enactment 
                of this Act; or
                    (B) in the case of an individual who is released 
                after the date of enactment of this Act, not later than 
                90 days after the date on which such individual is 
                released,
        that such individual may be eligible for reimbursement of any 
        amount described in subsection (b) pursuant to the program 
        described in paragraph (1).
            (3) Authorization.--
                    (A) In general.--Subject to subparagraph (B), in 
                the case of any reimbursement described in paragraph 
                (1), the Secretary shall issue such reimbursement to 
                the eligible individual in the same manner as any 
                refund of an overpayment of tax.
                    (B) Extension of limitation on time for 
                reimbursement.--With respect to any reimbursement under 
                paragraph (1)--
                            (i) the 3-year period of limitation 
                        prescribed by section 6511(a) of the Internal 
                        Revenue Code of 1986 shall not expire before 
                        the date which is 1 year after the date the 
                        notice described in paragraph (2) is provided 
                        to the eligible individual; and
                            (ii) any limitation under section 
                        6511(b)(2) of such Code shall not apply.
    (b) Eligible Individual.--For purposes of this section, the term 
``eligible individual'' means any applicable individual (as defined in 
section 7511(b)(1) of the Internal Revenue Code of 1986) 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 paragraph (1) of section 7508(a) 
of the Internal Revenue Code of 1986 which was not performed by the 
time prescribed therefor (without regard to any extensions).
    (c) Identification of Individuals.--Not later than January 1, 2024, 
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--
            (1) compile a list, based on such information as is 
        available, of United States nationals who, during the 
        applicable period--
                    (A) were included on the list described in section 
                7511(b)(1)(A) of the Internal Revenue Code of 1986; or
                    (B) the Attorney General determined, based on 
                credible information, were taken hostage abroad; and
            (2) provide the list described in paragraph (1) to the 
        Secretary.
    (d) Applicable Period.--For purposes of this section, the term 
``applicable period'' means the period--
            (1) beginning on January 1, 2021; and
            (2) ending on the date of enactment of this Act.
    (e) Secretary.--For purposes of this section, the term 
``Secretary'' means the Secretary of the Treasury or the Secretary's 
delegate.
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