I 

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 taxexempt status of terrorist supporting organizations, and 

for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Stop Terror-Financing 

5 and Tax Penalties on American Hostages Act’’. 


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1 SEC. 2. POSTPONEMENT OF TAX DEADLINES FOR HOS2 TAGES AND INDIVIDUALS WRONGFULLY DE3 TAINED ABROAD. 

4 (a) IN GENERAL.—Chapter 77 of the Internal Rev5 enue Code of 1986 is amended by inserting after section 

6 7510 the following new section: 

7 ‘‘SEC. 7511. TIME FOR PERFORMING CERTAIN ACTS POST8 PONED FOR HOSTAGES AND INDIVIDUALS 

9 WRONGFULLY DETAINED ABROAD. 

10 ‘‘(a) TIME TO BE DISREGARDED.— 

11 ‘‘(1) IN GENERAL.—The period during which 

12 an applicable individual was unlawfully or wrongfully 

13 detained abroad, or held hostage abroad, shall be 

14 disregarded in determining, under the internal rev15 enue laws, in respect of any tax liability of such indi16 vidual— 

17 ‘‘(A) whether any of the acts described in 

18 section 7508(a)(1) were performed within the 

19 time prescribed thereof (determined without re20 gard to extension under any other provision of 

21 this subtitle for periods after the initial date (as 

22 determined by the Secretary) on which such in23 dividual was unlawfully or wrongfully detained 

24 abroad or held hostage abroad), 


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1 ‘‘(B) the amount of any interest, penalty, 

2 additional amount, or addition to the tax for 

3 periods after such date, and 

4 ‘‘(C) the amount of any credit or refund. 

5 ‘‘(2) APPLICATION TO SPOUSE.—The provisions 

6 of paragraph (1) shall apply to the spouse of any in7 dividual entitled to the benefits of such paragraph. 

8 ‘‘(b) APPLICABLE INDIVIDUAL.— 

9 ‘‘(1) IN GENERAL.—For purposes of this sec10 tion, the term ‘applicable individual’ means any indi11 vidual who is— 

12 ‘‘(A) a United States national unlawfully 

13 or wrongfully detained abroad, as determined 

14 under section 302 of the Robert Levinson Hos15 tage Recovery and Hostage-Taking Account16 ability Act (22 U.S.C. 1741), or 

17 ‘‘(B) a United States national taken hos18 tage abroad, as determined pursuant to the 

19 findings of the Hostage Recovery Fusion Cell 

20 (as described in section 304 of the Robert 

21 Levinson Hostage Recovery and Hostage-Tak22 ing Accountability Act (22 U.S.C. 1741b)). 

23 ‘‘(2) INFORMATION PROVIDED TO TREASURY.— 

24 For purposes of identifying individuals described in 


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1 paragraph (1), not later than January 1, 2025, and 

2 annually thereafter— 

3 ‘‘(A) the Secretary of State shall provide 

4 the Secretary with a list of the individuals de5 scribed in paragraph (1)(A), as well as any 

6 other information necessary to identify such in7 dividuals, and 

8 ‘‘(B) the Attorney General, acting through 

9 the Hostage Recovery Fusion Cell, shall provide 

10 the Secretary with a list of the individuals de11 scribed in paragraph (1)(B), as well as any 

12 other information necessary to identify such in13 dividuals. 

14 ‘‘(c) MODIFICATION OF TREASURY DATABASES AND

15 INFORMATION SYSTEMS.—The Secretary shall ensure that 

16 databases and information systems of the Department of 

17 the Treasury are updated as necessary to ensure that stat18 ute expiration dates, interest and penalty accrual, and col19 lection activities are suspended consistent with the appli20 cation of subsection (a). 

21 ‘‘(d) REFUND AND ABATEMENT OF PENALTIES AND

22 FINES IMPOSED PRIOR TO IDENTIFICATION AS APPLICA23 BLE INDIVIDUAL.—In the case of any applicable indi24 vidual— 


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1 ‘‘(1) for whom any interest, penalty, additional 

2 amount, or addition to the tax in respect to any tax 

3 liability for any taxable year ending during the pe4 riod described in subsection (a)(1) was assessed or 

5 collected, and 

6 ‘‘(2) who was, subsequent to such assessment 

7 or collection, determined to be an individual de8 scribed in subparagraph (A) or (B) of subsection 

9 (b)(1), 

10 the Secretary shall abate any such assessment and refund 

11 any amount collected to such applicable individual in the 

12 same manner as any refund of an overpayment of tax 

13 under section 6402.’’. 

14 (b) CLERICAL AMENDMENT.—The table of sections 

15 for chapter 77 of the Internal Revenue Code of 1986 is 

16 amended by inserting after the item relating to section 

17 7510 the following new item: 

‘‘Sec. 7511. Time for performing certain acts postponed for hostages and individuals wrongfully detained abroad.’’. 

18 (c) EFFECTIVE DATE.—The amendments made by 

19 this section shall apply to taxable years ending after the 

20 date of enactment of this Act. 


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1 SEC. 3. REFUND AND ABATEMENT OF PENALTIES AND 

2 FINES PAID BY ELIGIBLE INDIVIDUALS. 

3 (a) IN GENERAL.—Section 7511 of the Internal Rev4 enue Code of 1986, as added by section 2, is amended 

5 by adding at the end the following new subsection: 

6 ‘‘(e) REFUND AND ABATEMENT OF PENALTIES AND

7 FINES PAID BY ELIGIBLE INDIVIDUALS WITH RESPECT

8 TO PERIODS PRIOR TO DATE OF ENACTMENT OF THIS

9 SECTION.— 

10 ‘‘(1) IN GENERAL.— 

11 ‘‘(A) ESTABLISHMENT.—Not later than 

12 January 1, 2025, the Secretary (in consultation 

13 with the Secretary of State and the Attorney 

14 General) shall establish a program to allow any 

15 eligible individual (or the spouse or any depend16 ent (as defined in section 152) of such indi17 vidual) to apply for a refund or an abatement 

18 of any amount described in paragraph (2) (in19 cluding interest) to the extent such amount was 

20 attributable to the applicable period. 

21 ‘‘(B) IDENTIFICATION OF INDIVIDUALS.— 

22 Not later than January 1, 2025, the Secretary 

23 of State and the Attorney General, acting 

24 through the Hostage Recovery Fusion Cell (as 

25 described in section 304 of the Robert Levinson 


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1 Hostage Recovery and Hostage-Taking Ac2 countability Act (22 U.S.C. 1741b)), shall— 

3 ‘‘(i) compile a list, based on such in4 formation as is available, of individuals 

5 who were applicable individuals during the 

6 applicable period, and 

7 ‘‘(ii) provide the list described in 

8 clause (i) to the Secretary. 

9 ‘‘(C) NOTICE.—For purposes of carrying 

10 out the program described in subparagraph (A), 

11 the Secretary (in consultation with the Sec12 retary of State and the Attorney General) shall, 

13 with respect to any individual identified under 

14 subparagraph (B), provide notice to such indi15 vidual— 

16 ‘‘(i) in the case of an individual who 

17 has been released on or before the date of 

18 enactment of this subsection, not later 

19 than 90 days after the date of enactment 

20 of this subsection, or 

21 ‘‘(ii) in the case of an individual who 

22 is released after the date of enactment of 

23 this subsection, not later than 90 days 

24 after the date on which such individual is 

25 released, 


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1 that such individual may be eligible for a refund 

2 or an abatement of any amount described in 

3 paragraph (2) pursuant to the program de4 scribed in subparagraph (A). 

5 ‘‘(D) AUTHORIZATION.— 

6 ‘‘(i) IN GENERAL.—Subject to clause 

7 (ii), in the case of any refund described in 

8 subparagraph (A), the Secretary shall 

9 issue such refund to the eligible individual 

10 in the same manner as any refund of an 

11 overpayment of tax. 

12 ‘‘(ii) EXTENSION OF LIMITATION ON

13 TIME FOR REFUND.—With respect to any 

14 refund under subparagraph (A)— 

15 ‘‘(I) the 3-year period of limita16 tion prescribed by section 6511(a) 

17 shall be extended until the end of the 

18 1-year period beginning on the date 

19 that the notice described in subpara20 graph (C) is provided to the eligible 

21 individual, and 

22 ‘‘(II) any limitation under section 

23 6511(b)(2) shall not apply. 

24 ‘‘(2) ELIGIBLE INDIVIDUAL.—For purposes of 

25 this subsection, the term ‘eligible individual’ means 


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1 any applicable individual who, for any taxable year 

2 ending during the applicable period, paid or incurred 

3 any interest, penalty, additional amount, or addition 

4 to the tax in respect to any tax liability for such 

5 year of such individual based on a determination 

6 that an act described in section 7508(a)(1) which 

7 was not performed by the time prescribed therefor 

8 (without regard to any extensions). 

9 ‘‘(3) APPLICABLE PERIOD.—For purposes of 

10 this subsection, the term ‘applicable period’ means 

11 the period— 

12 ‘‘(A) beginning on January 1, 2021, and 

13 ‘‘(B) ending on the date of enactment of 

14 this subsection.’’. 

15 (b) EFFECTIVE DATE.—The amendment made by 

16 this section shall apply to taxable years ending on or be17 fore the date of enactment of this Act. 

18 SEC. 4. TERMINATION OF TAX-EXEMPT STATUS OF TER19 RORIST SUPPORTING ORGANIZATIONS. 

20 (a) IN GENERAL.—Section 501(p) of the Internal 

21 Revenue Code of 1986 is amended by adding at the end 

22 the following new paragraph: 

23 ‘‘(8) APPLICATION TO TERRORIST SUPPORTING

24 ORGANIZATIONS.— 


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1 ‘‘(A) IN GENERAL.—For purposes of this 

2 subsection, in the case of any terrorist sup3 porting organization— 

4 ‘‘(i) such organization (and the des5 ignation of such organization under sub6 paragraph (B)) shall be treated as de7 scribed in paragraph (2), and 

8 ‘‘(ii) the period of suspension de9 scribed in paragraph (3) with respect to 

10 such organization shall be treated as begin11 ning on the date that the Secretary des12 ignates such organization under subpara13 graph (B) and ending on the date that the 

14 Secretary rescinds such designation under 

15 subparagraph (D). 

16 ‘‘(B) TERRORIST SUPPORTING ORGANIZA17 TION.—For purposes of this paragraph, the 

18 term ‘terrorist supporting organization’ means 

19 any organization which is designated by the 

20 Secretary as having provided, during the 3-year 

21 period ending on the date of such designation, 

22 material support or resources (within the mean23 ing of section 2339B of title 18, United States 

24 Code) to an organization described in para25 graph (2) (determined after the application of 


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1 this paragraph to such organization) in excess 

2 of a de minimis amount. 

3 ‘‘(C) DESIGNATION PROCEDURE.— 

4 ‘‘(i) NOTICE REQUIREMENT.—Prior to 

5 designating any organization as a terrorist 

6 supporting organization under subpara7 graph (B), the Secretary shall mail to the 

8 most recent mailing address provided by 

9 such organization on the organization’s an10 nual return or notice under section 6033 

11 (or subsequent form indicating a change of 

12 address) a written notice which includes— 

13 ‘‘(I) a statement that the Sec14 retary will designate such organization 

15 as a terrorist supporting organization 

16 unless the organization satisfies the 

17 requirements of subclause (I) or (II) 

18 of clause (ii), 

19 ‘‘(II) the name of the organiza20 tion or organizations with respect to 

21 which the Secretary has determined 

22 such organization provided material 

23 support or sources as described in 

24 subparagraph (B), and 


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1 ‘‘(III) a description of such mate2 rial support or resources to the extent 

3 consistent with national security and 

4 law enforcement interests. 

5 ‘‘(ii) OPPORTUNITY TO CURE.—In the 

6 case of any notice provided to an organiza7 tion under clause (i), the Secretary shall, 

8 at the close of the 90-day period beginning 

9 on the date that such notice was sent, des10 ignate such organization as a terrorist sup11 porting organization under subparagraph 

12 (B) if (and only if) such organization has 

13 not (during such period)— 

14 ‘‘(I) demonstrated to the satisfac15 tion of the Secretary that such organi16 zation did not provide the material 

17 support or resources referred to in 

18 subparagraph (B), or 

19 ‘‘(II) made reasonable efforts to 

20 have such support or resources re21 turned to such organization and cer22 tified in writing to the Secretary that 

23 such organization will not provide any 

24 further support or resources to orga25 nizations described in paragraph (2). 


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1 A certification under subclause (II) shall 

2 not be treated as valid if the organization 

3 making such certification has provided any 

4 other such certification during the pre5 ceding 5 years. 

6 ‘‘(D) RESCISSION.—The Secretary shall re7 scind a designation under subparagraph (B) if 

8 (and only if)— 

9 ‘‘(i) the Secretary determines that 

10 such designation was erroneous, 

11 ‘‘(ii) after the Secretary receives a 

12 written certification from an organization 

13 that such organization did not receive the 

14 notice described in subparagraph (C)(i)— 

15 ‘‘(I) the Secretary determines 

16 that it is reasonable to believe that 

17 such organization did not receive such 

18 notice, and 

19 ‘‘(II) such organization satisfies 

20 the requirements of subclause (I) or 

21 (II) of subparagraph (C)(ii) (deter22 mined after taking into account the 

23 last sentence thereof), or 

24 ‘‘(iii) the Secretary determines, with 

25 respect to all organizations to which the 


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1 material support or resources referred to 

2 in subparagraph (B) were provided, the pe3 riods of suspension under paragraph (3) 

4 have ended. 

5 A certification described in the matter pre6 ceding subclause (I) of clause (II) shall not be 

7 treated as valid if the organization making such 

8 certification has provided any other such certifi9 cation during the preceding 5 years. 

10 ‘‘(E) ADMINISTRATIVE REVIEW BY INTER11 NAL REVENUE SERVICE INDEPENDENT OFFICE

12 OF APPEALS.—In the case of the designation of 

13 an organization by the Secretary as a terrorist 

14 supporting organization under subparagraph 

15 (B), a dispute regarding such designation shall 

16 be subject to resolution by the Internal Revenue 

17 Service Independent Office of Appeals under 

18 section 7803(e) in the same manner as if such 

19 designation were made by the Internal Revenue 

20 Service and paragraph (5) of this subsection 

21 did not apply. 

22 ‘‘(F) JURISDICTION OF UNITED STATES

23 COURTS.—Notwithstanding paragraph (5), the 

24 United States district courts shall have exclu25 sive jurisdiction to review a final determination 


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1 with respect to an organization’s designation as 

2 a terrorist supporting organization under sub3 paragraph (B). In the case of any such deter4 mination which was based on classified informa5 tion (as defined in section 1(a) of the Classified 

6 Information Procedures Act), such information 

7 may be submitted to the reviewing court ex 

8 parte and in camera. For purposes of this sub9 paragraph, a determination with respect to an 

10 organization’s designation as a terrorist sup11 porting organization shall not fail to be treated 

12 as a final determination merely because such 

13 organization fails to utilize the dispute resolu14 tion process of the Internal Revenue Service 

15 Independent Office of Appeals provided under 

16 subparagraph (E).’’. 

17 (b) EFFECTIVE DATE.—The amendment made by 

18 this subsection shall apply to designations made after the 

19 date of the enactment of this Act in taxable years ending 

20 after such date. 

Æ 


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