The Internal Revenue Service (IRS) could be updating its tax penalty rules for a select group of Americans.
H.R. 9495, or the Stop Terror-Financing and Tax Penalties on American Hostages Act, was passed Thursday and now heads to President Joe Biden‘s desk for approval.
If Biden signs it, the law will postpone tax filing deadlines for Americans and their spouses if they are unlawfully detained abroad or held hostage. There would also be a refund of tax penalties and fines for those detained abroad.
“It’s the right call to make,” Alex Beene, a financial literacy instructor for the University of Tennessee at Martin, told Newsweek. “For the few that fall into this category, the process of being detained and held against their will can be challenging enough, let alone having to deal with the financial fallout of it due to the IRS wanting them to stay on the same timeline as other taxpayers. This allows the process …