Title: A bill to suspend the collection of income taxes and related interest and penalties from United States nationals who are unlawfully or wrongfully detained abroad and to reimburse such nationals for any penalties paid during such a detention.
Policy area: Taxation

Summary:
This bill defers the collection of income taxes from a U.S. national who is unlawfully or wrongfully detained abroad until 180 days after such national is released from detention, returns to the United States, or departs the detaining country. It also requires the reimbursement of penalties for late payment of income taxes that become due during such detainment.
The bill suspends for 270 days after the release of a U.S. national the running of a statute of limitations for the collection of income taxes deferred by this bill.
The deferral allowed by this bill does not apply to social security taxes imposed on employees.

[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[S. 5320 Introduced in Senate (IS)]

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117th CONGRESS
  2d Session
                                S. 5320

  To suspend the collection of income taxes and related interest and 
penalties from United States nationals who are unlawfully or wrongfully 
detained abroad and to reimburse such nationals for any penalties paid 
                        during such a detention.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           December 20, 2022

 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 suspend the collection of income taxes and related interest and 
penalties from United States nationals who are unlawfully or wrongfully 
detained abroad and to reimburse such nationals for any penalties paid 
                        during such a detention.

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

SECTION 1. SUSPENSION OF FINES AND INTEREST ON TAX DELINQUENCIES OF 
              CERTAIN IMPRISONED EXPATRIATES.

    Section 302 of the Robert Levinson Hostage Recovery and Hostage-
Taking Accountability Act (22 U.S.C. 1741) is amended by adding at the 
end the following:
    ``(e) Deferral of Income Tax.--
            ``(1) In general.--For any United States national listed as 
        being detained unlawfully or wrongfully abroad on the annual 
        report required under subsection (c), the collection of Federal 
        income tax on the income of such United States national falling 
        due during such detention shall be deferred until the date that 
        is 180 days after such United States national is released from 
        detention, returns to the United States, or departs the 
        detaining country.
            ``(2) Reimbursement of penalties paid as a result of 
        wrongful detention abroad.--If the Commissioner of Internal 
        Revenue, in consultation with the Secretary of State, 
        determines that a United States national described in paragraph 
        (1) paid penalties for the late payment of Federal income taxes 
        that were due to be paid during the United States national's 
        unlawful or wrongful detention, the Commissioner shall refund 
        the amount so paid to the United States national.
            ``(3) Accrual of interest or penalty.--No interest or 
        penalty shall accrue for the period of deferment by reason of 
        nonpayment on any amount of tax deferred pursuant to paragraph 
        (1).
            ``(4) Statute of limitations.--The running of a statute of 
        limitations against the collection of any tax deferred pursuant 
        to paragraph (1), by seizure or otherwise, shall be suspended 
        until the date that is 270 days after the United States 
        national is released from detention, returns to the United 
        States, or departs the detaining country.
            ``(5) Limitation.--This section shall not apply to any tax 
        imposed on employees under section 3101 of the Internal Revenue 
        Code of 1986.''.
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