Senators Coons and Rounds’ Stop Tax Penalties on American Hostages Act clears Senate

WASHINGTON - On Tuesday, the Senate unanimously cleared the Stop Tax Penalties on American Hostages Act led by U.S. Senators Chris Coons (D-Del.) and Mike Rounds (R-S.D.). The bipartisan bill would stop the IRS from imposing fines and penalties on American hostages and wrongful detainees for late tax payments while they are held abroad.

Many Americans who have been taken hostage or wrongfully detained abroad return home only to be treated like tax cheats - fined and charged interest for non-payment of taxes during their detention. Senator Coons wrote this bill after hearing from Jason Rezaian, a Washington Post reporter who was wrongfully detained by the Iranian government for more than a year. Upon his release and return to the United States, Rezaian owed a large sum to the IRS due to non-payment of taxes during his detention.

"Coming home from being held hostage or wrongfully detained abroad to find that your government has penalized you for being unable to pay your taxes is a moral outrage," said Senator Coons. "I'm glad that my colleagues agree and that the Stop Tax Penalties on American Hostages Act has been unanimously cleared by the Senate. I urge my colleagues in the House to pass this important bipartisan legislation and join me in supporting Americans unjustly held abroad."

"Our bipartisan work over the last few years to provide commonsense relief for Americans held hostage or wrongfully detained has finally cleared the Senate," said Senator Rounds. "For obvious reasons, any American held hostage abroad should not have the heavy hand of the IRS hunting down and charging penalties on missed federal tax payments. While we will continue our efforts to get hostages back, especially from countries like Russia, China, and Venezuela, this legislation will protect Americans from misguided statutory requirements and unnecessary red tape when they return home. I urge my colleagues in the House to pass this bill as quickly as possible."

"While I don't believe there was ever any ill intent by the U.S. government to penalize those of us who have been wrongfully detained abroad, there was also no remedy for a challenge just about all of us face upon our return home," said Jason Rezaian. "I'm heartened that the Senate has chosen to correct an oversight that has affected so many American victims of state-sponsored terror. I hope the House of Representatives follows suit and acts soon to support American survivors of foreign state hostage-taking."

"The Bring Our Families Home Campaign enthusiastically welcomes the passage of the Stop Tax Penalties on American Hostages Act," said Harrison Li, Steering Committee Member, the Bring Our Families Home Campaign. "The act will help mitigate one of the innumerable financial challenges that our families must currently unfairly endure while our loved ones remain hostage or wrongfully detained abroad."

"The James W. Foley Legacy Foundation is forever grateful to Senators Coons and Rounds, and their amazing staff, for their leadership and moral courage in passing this much-needed Stop Tax Penalties on American Hostages Act," saidDiane Foley, Founder and President, the James W. Foley Legacy Foundation.

The Stop Tax Penalties on American Hostages Act (S. 4057) is cosponsored by Senators Ron Wyden (D-Ore.), Thom Tillis (R-N.C.), Ben Cardin (D-Md.), Bill Cassidy (R-La.), and Rick Scott (R-Fla.). In the House, this bill (H.R. 7791) is cosponsored by Representatives Dina Titus (D-Nev.), Claudia Tenney (R-N.Y.), Don Beyer (D-Va.), Haley Stevens (D-Mich.), and French Hill (R-Ark.).

In January, President Joe Biden signed Senator Coons' legislation to establish March 9 as the annual National Hostage and Wrongful Detainee Day and create an official Hostage and Wrongful Detainee flag.