Presently, there are around 46 American citizens being wrongfully detained or held hostage abroad, including in China, Russia, Iran, and by Hamas in Gaza. While they remain held captive by adversaries across the world, a horrifying flaw in U.S. tax code penalizes these American hostages: under current law, the IRS cannot extend relief past one year to wrongfully detained taxpayers, and there is no process to proactively suspend interest for these taxpayers as they suffer far from home. 

Americans being wrongfully detained abroad, such as the American citizens currently being held hostage by Hamas, shouldn’t have to worry about paying off penalties, late fees, and unpaid taxes when they finally return home – they should be able to focus on being reunited with their families, recovering, and reacclimating to life at home. 

Meanwhile, some of the terrorist organizations holding Americans captive may be getting financial and material support from tax-exempt U.S. organizations and nonprofits. A Ways and Means investigation following the post-October 7th antisemitic protests that raged across our nation found that tax-exempt organizations were used to support these shameful efforts, including on college campuses. 

Once again, current law does not do enough to prevent this: right now, the tax-exempt status of an organization can be suspended if it is designated by the State Department as a terrorist organization, but not if it has been identified as providing support to a designated terrorist or terrorist organization. 

We cannot allow American hostages abroad to be penalized by U.S. tax law while terrorist-supporting organizations and nonprofits retain their tax-exempt status. It is our job to bring these hostages home, not saddle them with unpaid tax bills, and hold accountable any organization that finances terror against our citizens.

Rep. Claudia Tenney’s legislation, H.R. 9495, the Stop Terror-Financing and Tax Penalties on American Hostages Act, prevents the IRS from charging late fees and penalties on American citizens wrongfully detained abroad, and revokes the tax-exempt status of U.S. non-profit organizations who have been found to provide financial or material support to designated terrorist groups like Hamas.

This legislation is a no-brainer: American citizens should not be penalized for being held hostage by adversaries abroad, and U.S. organizations supporting terrorism should not be exempt from taxes. Will Democrats join us in voting for common sense and fairness, or will they vote against captive Americans and for supporters of terrorism?