Stop Tax Penalties on American Hostages Act of 2025

This bill extends certain federal tax deadlines for U.S. nationals who are unlawfully or wrongfully detained abroad or held hostage abroad and their spouses. The bill also allows for an abatement and refund of additional taxes, interest, and penalties assessed to such individuals for failing to meet a federal tax deadline during a period of detention.

Specifically, under the bill, the time period during which a U.S. national is unlawfully or wrongfully detained abroad or held hostage abroad is disregarded in determining certain federal tax deadlines, including deadlines for

filing a return for and paying federal income, estate, gift, employment, or excise taxes;

a tax credit or refund claim; and

Summary by the Congressional Research Service.