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[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 9495 Received in Senate (RDS)]

<DOC>
118th CONGRESS
  2d Session
                                H. R. 9495

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                            December 2, 2024

                                Received

_______________________________________________________________________

                                 AN ACT

 
 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 section shall apply 
to designations made after the date of the enactment of this Act in 
taxable years ending after such date.

            Passed the House of Representatives November 21, 2024.

            Attest:

                                             KEVIN F. MCCUMBER,

                                                                 Clerk.
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