Be it enacted by the Senate and House of Representa-
tives 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 HOS-
TAGES AND INDIVIDUALS WRONGFULLY DE-
TAINED ABROAD. 
(a) IN GENERAL.—Chapter 77 of the Internal Rev-
enue Code of 1986 is amended by inserting after section 
7510 the following new section: 
‘‘SEC. 7511. TIME FOR PERFORMING CERTAIN ACTS POST-
PONED 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 rev-
enue laws, in respect of any tax liability of such indi-
vidual— 
‘‘(A) whether any of the acts described in 
section 7508(a)(1) were performed within the 
time prescribed thereof (determined without re-
gard to extension under any other provision of
this subtitle for periods after the initial date (as 
determined by the Secretary) on which such in-
dividual 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 in-
dividual entitled to the benefits of such paragraph. 
‘‘(b) APPLICABLE INDIVIDUAL.— 
‘‘(1) IN GENERAL.—For purposes of this sec-
tion, the term ‘applicable individual’ means any indi-
vidual who is— 
‘‘(A) a United States national unlawfully 
or wrongfully detained abroad, as determined 
under section 302 of the Robert Levinson Hos-
tage Recovery and Hostage-Taking Account-
ability Act (22 U.S.C. 1741), or 
‘‘(B) a United States national taken hos-
tage 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-Tak-
ing 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 de-
scribed in paragraph (1)(A), as well as any 
other information necessary to identify such in-
dividuals, and 
‘‘(B) the Attorney General, acting through 
the Hostage Recovery Fusion Cell, shall provide 
the Secretary with a list of the individuals de-
scribed in paragraph (1)(B), as well as any 
other information necessary to identify such in-
dividuals. 
‘‘(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 stat-
ute expiration dates, interest and penalty accrual, and col-
lection activities are suspended consistent with the appli-
cation of subsection (a).
‘‘(d) REFUND AND ABATEMENT OF PENALTIES AND 
FINES IMPOSED PRIOR TO IDENTIFICATION AS APPLICA-
BLE INDIVIDUAL.—In the case of any applicable indi-
vidual— 
‘‘(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 pe-
riod described in subsection (a)(1) was assessed or 
collected, and 
‘‘(2) who was, subsequent to such assessment 
or collection, determined to be an individual de-
scribed 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 indi-
viduals 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 Rev-
enue 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 depend-
ent (as defined in section 152) of such indi-
vidual) to apply for a refund or an abatement 
of any amount described in paragraph (2) (in-
cluding 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 Ac-
countability Act (22 U.S.C. 1741b)), shall— 
‘‘(i) compile a list, based on such in-
formation 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 Sec-
retary of State and the Attorney General) shall, 
with respect to any individual identified under 
subparagraph (B), provide notice to such indi-
vidual— 
‘‘(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 de-
scribed 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 limita-
tion 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 subpara-
graph (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 be-
fore the date of enactment of this Act. 
SEC. 4. TERMINATION OF TAX-EXEMPT STATUS OF TER-
RORIST 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 sup-
porting organization— 
‘‘(i) such organization (and the des-
ignation of such organization under sub-
paragraph (B)) shall be treated as de-
scribed in paragraph (2), and 
‘‘(ii) the period of suspension de-
scribed in paragraph (3) with respect to 
such organization shall be treated as begin-
ning on the date that the Secretary des-
ignates such organization under subpara-
graph (B) and ending on the date that the 
Secretary rescinds such designation under 
subparagraph (D). 
‘‘(B) TERRORIST SUPPORTING ORGANIZA-
TION.—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 mean-
ing of section 2339B of title 18, United States 
Code) to an organization described in para-
graph (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 subpara-
graph (B), the Secretary shall mail to the 
most recent mailing address provided by 
such organization on the organization’s an-
nual return or notice under section 6033 
(or subsequent form indicating a change of 
address) a written notice which includes— 
‘‘(I) a statement that the Sec-
retary 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 organiza-
tion or organizations with respect to 
which the Secretary has determined 
such organization provided material 
support or sources as described in 
subparagraph (B), and