II 
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 de-
tained or held hostage abroad, to terminate the tax- 
exempt status of terrorist supporting organizations, and 
for other purposes. 
VerDate Sep 11 2014 
03:09 Jan 05, 2025
Jkt 059200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6652
E:\BILLS\H9495.RDS
H9495
kjohnson on DSK7ZCZBW3PROD with $$_JOB
HR 9495 RDS
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Stop Terror-Financing 
and Tax Penalties on American Hostages Act’’. 
SEC. 2. POSTPONEMENT OF TAX DEADLINES FOR HOS-
TAGES AND INDIVIDUALS WRONGFULLY DE-
TAINED ABROAD. 
(a) IN GENERAL.—Chapter 77 of the Internal Rev-
enue Code of 1986 is amended by inserting after section 
7510 the following new section: 
‘‘SEC. 7511. TIME FOR PERFORMING CERTAIN ACTS POST-
PONED FOR HOSTAGES AND INDIVIDUALS 
WRONGFULLY DETAINED ABROAD. 
‘‘(a) TIME TO BE DISREGARDED.— 
‘‘(1) IN GENERAL.—The period during which 
an applicable individual was unlawfully or wrongfully 
detained abroad, or held hostage abroad, shall be 
disregarded in determining, under the internal rev-
enue laws, in respect of any tax liability of such indi-
vidual— 
‘‘(A) whether any of the acts described in 
section 7508(a)(1) were performed within the 
time prescribed thereof (determined without re-
gard to extension under any other provision of 
VerDate Sep 11 2014 
03:09 Jan 05, 2025
Jkt 059200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H9495.RDS
H9495
kjohnson on DSK7ZCZBW3PROD with $$_JOB
HR 9495 RDS
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 
VerDate Sep 11 2014 
03:09 Jan 05, 2025
Jkt 059200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H9495.RDS
H9495
kjohnson on DSK7ZCZBW3PROD with $$_JOB
HR 9495 RDS
Levinson Hostage Recovery and Hostage-Tak-
ing Accountability Act (22 U.S.C. 1741b)). 
‘‘(2) INFORMATION PROVIDED TO TREASURY.— 
For purposes of identifying individuals described in 
paragraph (1), not later than January 1, 2025, and 
annually thereafter— 
‘‘(A) the Secretary of State shall provide 
the Secretary with a list of the individuals de-
scribed in paragraph (1)(A), as well as any 
other information necessary to identify such in-
dividuals, and 
‘‘(B) the Attorney General, acting through 
the Hostage Recovery Fusion Cell, shall provide 
the Secretary with a list of the individuals de-
scribed in paragraph (1)(B), as well as any 
other information necessary to identify such in-
dividuals. 
‘‘(c) MODIFICATION OF TREASURY DATABASES AND 
INFORMATION SYSTEMS.—The Secretary shall ensure that 
databases and information systems of the Department of 
the Treasury are updated as necessary to ensure that stat-
ute expiration dates, interest and penalty accrual, and col-
lection activities are suspended consistent with the appli-
cation of subsection (a). 
VerDate Sep 11 2014 
03:09 Jan 05, 2025
Jkt 059200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H9495.RDS
H9495
kjohnson on DSK7ZCZBW3PROD with $$_JOB
HR 9495 RDS
‘‘(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. 
VerDate Sep 11 2014 
03:09 Jan 05, 2025
Jkt 059200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H9495.RDS
H9495
kjohnson on DSK7ZCZBW3PROD with $$_JOB
HR 9495 RDS
SEC. 3. REFUND AND ABATEMENT OF PENALTIES AND 
FINES PAID BY ELIGIBLE INDIVIDUALS. 
(a) IN GENERAL.—Section 7511 of the Internal Rev-
enue Code of 1986, as added by section 2, is amended 
by adding at the end the following new subsection: 
‘‘(e) REFUND AND ABATEMENT OF PENALTIES AND 
FINES PAID BY ELIGIBLE INDIVIDUALS WITH RESPECT 
TO PERIODS PRIOR TO DATE OF ENACTMENT OF THIS 
SECTION.— 
‘‘(1) IN GENERAL.— 
‘‘(A) ESTABLISHMENT.—Not later than 
January 1, 2025, the Secretary (in consultation 
with the Secretary of State and the Attorney 
General) shall establish a program to allow any 
eligible individual (or the spouse or any depend-
ent (as defined in section 152) of such indi-
vidual) to apply for a refund or an abatement 
of any amount described in paragraph (2) (in-
cluding interest) to the extent such amount was 
attributable to the applicable period. 
‘‘(B) IDENTIFICATION OF INDIVIDUALS.— 
Not later than January 1, 2025, the Secretary 
of State and the Attorney General, acting 
through the Hostage Recovery Fusion Cell (as 
described in section 304 of the Robert Levinson 
VerDate Sep 11 2014 
03:09 Jan 05, 2025
Jkt 059200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6201
E:\BILLS\H9495.RDS
H9495
kjohnson on DSK7ZCZBW3PROD with $$_JOB
HR 9495 RDS
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, 
VerDate Sep 11 2014 
03:09 Jan 05, 2025
Jkt 059200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6201
E:\BILLS\H9495.RDS
H9495
kjohnson on DSK7ZCZBW3PROD with $$_JOB
HR 9495 RDS
that such individual may be eligible for a refund 
or an abatement of any amount described in 
paragraph (2) pursuant to the program de-
scribed in subparagraph (A). 
‘‘(D) AUTHORIZATION.— 
‘‘(i) IN GENERAL.—Subject to clause 
(ii), in the case of any refund described in 
subparagraph (A), the Secretary shall 
issue such refund to the eligible individual 
in the same manner as any refund of an 
overpayment of tax. 
‘‘(ii) EXTENSION OF LIMITATION ON 
TIME FOR REFUND.—With respect to any 
refund under subparagraph (A)— 
‘‘(I) the 3-year period of limita-
tion prescribed by section 6511(a) 
shall be extended until the end of the 
1-year period beginning on the date 
that the notice described in subpara-
graph (C) is provided to the eligible 
individual, and 
‘‘(II) any limitation under section 
6511(b)(2) shall not apply. 
‘‘(2) ELIGIBLE INDIVIDUAL.—For purposes of 
this subsection, the term ‘eligible individual’ means 
VerDate Sep 11 2014 
03:09 Jan 05, 2025
Jkt 059200
PO 00000
Frm 00008
Fmt 6652
Sfmt 6201
E:\BILLS\H9495.RDS
H9495
kjohnson on DSK7ZCZBW3PROD with $$_JOB
HR 9495 RDS
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.— 
VerDate Sep 11 2014 
03:09 Jan 05, 2025
Jkt 059200
PO 00000
Frm 00009
Fmt 6652
Sfmt 6201
E:\BILLS\H9495.RDS
H9495
kjohnson on DSK7ZCZBW3PROD with $$_JOB
HR 9495 RDS
‘‘(A) IN GENERAL.—For purposes of this 
subsection, in the case of any terrorist sup-
porting organization— 
‘‘(i) such organization (and the des-
ignation of such organization under sub-
paragraph (B)) shall be treated as de-
scribed in paragraph (2), and 
‘‘(ii) the period of suspension de-
scribed in paragraph (3) with respect to 
such organization shall be treated as begin-
ning on the date that the Secretary des-
ignates such organization under subpara-
graph (B) and ending on the date that the 
Secretary rescinds such designation under 
subparagraph (D). 
‘‘(B) TERRORIST SUPPORTING ORGANIZA-
TION.—For purposes of this paragraph, the 
term ‘terrorist supporting organization’ means 
any organization which is designated by the 
Secretary as having provided, during the 3-year 
period ending on the date of such designation, 
material support or resources (within the mean-
ing of section 2339B of title 18, United States 
Code) to an organization described in para-
graph (2) (determined after the application of 
VerDate Sep 11 2014 
03:09 Jan 05, 2025
Jkt 059200
PO 00000
Frm 00010
Fmt 6652
Sfmt 6201
E:\BILLS\H9495.RDS
H9495
kjohnson on DSK7ZCZBW3PROD with $$_JOB
HR 9495 RDS
‘‘(III) a description of such mate-
rial 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 organiza-
tion under clause (i), the Secretary shall, 
at the close of the 90-day period beginning 
on the date that such notice was sent, des-
ignate such organization as a terrorist sup-
porting organization under subparagraph 
(B) if (and only if) such organization has 
not (during such period)— 
‘‘(I) demonstrated to the satisfac-
tion of the Secretary that such organi-
zation did not provide the material 
support or resources referred to in 
subparagraph (B), or 
‘‘(II) made reasonable efforts to 
have such support or resources re-
turned to such organization and cer-
tified in writing to the Secretary that 
such organization will not provide any 
further support or resources to orga-
nizations described in paragraph (2). 
VerDate Sep 11 2014 
03:09 Jan 05, 2025
Jkt 059200
PO 00000
Frm 00012
Fmt 6652
Sfmt 6201
E:\BILLS\H9495.RDS
H9495
kjohnson on DSK7ZCZBW3PROD with $$_JOB
HR 9495 RDS
A certification under subclause (II) shall 
not be treated as valid if the organization 
making such certification has provided any 
other such certification during the pre-
ceding 5 years. 
‘‘(D) RESCISSION.—The Secretary shall re-
scind a designation under subparagraph (B) if 
(and only if)— 
‘‘(i) the Secretary determines that 
such designation was erroneous, 
‘‘(ii) after the Secretary receives a 
written certification from an organization 
that such organization did not receive the 
notice described in subparagraph (C)(i)— 
‘‘(I) the Secretary determines 
that it is reasonable to believe that 
such organization did not receive such 
notice, and 
‘‘(II) such organization satisfies 
the requirements of subclause (I) or 
(II) of subparagraph (C)(ii) (deter-
mined after taking into account the 
last sentence thereof), or 
‘‘(iii) the Secretary determines, with 
respect to all organizations to which the 
VerDate Sep 11 2014 
03:09 Jan 05, 2025
Jkt 059200
PO 00000
Frm 00013
Fmt 6652
Sfmt 6201
E:\BILLS\H9495.RDS
H9495
kjohnson on DSK7ZCZBW3PROD with $$_JOB
HR 9495 RDS
material support or resources referred to 
in subparagraph (B) were provided, the pe-
riods of suspension under paragraph (3) 
have ended. 
A certification described in the matter pre-
ceding subclause (I) of clause (II) shall not be 
treated as valid if the organization making such 
certification has provided any other such certifi-
cation during the preceding 5 years. 
‘‘(E) ADMINISTRATIVE REVIEW BY INTER-
NAL 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 exclu-
sive jurisdiction to review a final determination 
VerDate Sep 11 2014 
03:09 Jan 05, 2025
Jkt 059200
PO 00000
Frm 00014
Fmt 6652
Sfmt 6201
E:\BILLS\H9495.RDS
H9495
kjohnson on DSK7ZCZBW3PROD with $$_JOB
HR 9495 RDS
with respect to an organization’s designation as 
a terrorist supporting organization under sub-
paragraph (B). In the case of any such deter-
mination which was based on classified informa-
tion (as defined in section 1(a) of the Classified 
Information Procedures Act), such information 
may be submitted to the reviewing court ex 
parte and in camera. For purposes of this sub-
paragraph, a determination with respect to an 
organization’s designation as a terrorist sup-
porting organization shall not fail to be treated 
as a final determination merely because such 
organization fails to utilize the dispute resolu-
tion process of the Internal Revenue Service 
Independent Office of Appeals provided under 
subparagraph (E).’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to designations made after the date 
of the enactment of this Act in taxable years ending after 
such date. 
Passed the House of Representatives November 21, 
2024. 
Attest: 
KEVIN F. MCCUMBER, 
Clerk. 
VerDate Sep 11 2014 
03:09 Jan 05, 2025
Jkt 059200
PO 00000
Frm 00015
Fmt 6652
Sfmt 6201
E:\BILLS\H9495.RDS
H9495
kjohnson on DSK7ZCZBW3PROD with $$_JOB