Niagara Leader

Congresswoman Claudia Tenney (NY-24) announced that her bill, the Stop Terror-Financing and Tax Penalties on American Hostages Act, which she co-led with Congressman David Kustoff (TN-8), has unanimously passed the House Ways and Means Committee Markup.

The legislation aims to amend the Internal Revenue Code of 1986. It proposes postponing tax deadlines and reimbursing paid late fees for U.S. citizens wrongfully detained or held hostage abroad. Additionally, it seeks to terminate the tax-exempt status of organizations supporting terrorism.

“No American who has suffered the injustice of wrongful detention or hostage-taking by our adversaries should return home to face penalties from their own government. The Stop Terror-Financing and Tax Penalties on American Hostages Act will ensure that American hostages, wrongful detainees, and their families are not further burdened with tax penalties for circumstances beyond their control. Thank you to Chairman Smith, Representatives Dina Titus, David Kustoff, and Brad Schneider for joining me in championing this effort and working to ensure when American hostages and wrongful detainees are returned home, they are not penalized,” said Congresswoman Tenney.

“The October 7 attack on Israel by Hamas is a sobering reminder that foreign adversaries seeking to influence American foreign policy will use our citizens as bargaining leverage. The last thing Americans who have been held hostage or wrongfully detained abroad – including several Americans currently held hostage by Hamas – should have to worry about is settling an unpaid tax bill with Uncle Sam. An investigation by our committee has also revealed that some of the same groups holding Americans hostage like Hamas may be receiving support from American tax-exempt organizations to help finance their terror. The Stop Terror-Financing and Tax Penalties on American Hostages Act, authored by Reps. Tenney, Kustoff, Schneider, and Titus would prevent the IRS from charging penalties on back-due taxes owed by Americans held hostage or wrongfully detained abroad and require the IRS to revoke the tax-exempt status of any organization that provides financial support or resources to designated terrorist groups like Hamas,” said Ways and Means Committee Chairman Jason Smith.

Watch Tenney’s full remarks at the markup here.