Postponement of tax deadlines for hostages and individuals wrongfully detained abroad

(a) In general Chapter 77 is amended by inserting after section 7510 the following new section: 7511. Time for performing certain acts postponed for hostages and individuals wrongfully detained abroad (a) Time to be disregarded (1) In general The period during which an applicable individual was unlawfully or wrongfully detained abroad, or held hostage abroad, shall be disregarded in determining, under the internal revenue laws, in respect of any tax liability of such individual— (A) whether any of the acts described in section 7508(a)(1) were performed within the time prescribed thereof (determined without regard to extension under any other provision of this subtitle for periods after the initial date (as determined by the Secretary) on which such individual was unlawfully or wrongfully detained abroad or held hostage abroad), (B) the amount of any interest, penalty, additional amount, or addition to the tax for periods after such date, and (C) the amount of any credit or refund. (2) Application to spouse The provisions of paragraph (1) shall apply to the spouse of any individual entitled to the benefits of such paragraph. (b) Applicable individual (1) In general For purposes of this section, the term applicable individual means any individual who is— (A) a United States national unlawfully or wrongfully detained abroad, as determined under section 302 of the Robert Levinson Hostage Recovery and Hostage-Taking Accountability Act (22 U.S.C. 1741), or (B) a United States national taken hostage abroad, as determined pursuant to the findings of the Hostage Recovery Fusion Cell (as described in section 304 of the Robert Levinson Hostage Recovery and Hostage-Taking Accountability Act (22 U.S.C. 1741b)). (2) Information provided to Treasury For purposes of identifying individuals described in paragraph (1), not later than January 1, 2027, and annually thereafter— (A) the Secretary of State shall provide the Secretary with a list of the individuals described in paragraph (1)(A), as well as any other information necessary to identify such individuals, and (B) the Attorney General, acting through the Hostage Recovery Fusion Cell, shall provide the Secretary with a list of the individuals described in paragraph (1)(B), as well as any other information necessary to identify such individuals. (c) Special rule for overpayments (1) In general Subsection (a) shall not apply for purposes of determining the amount of interest on any overpayment of tax. (2) Special rules If an individual is entitled to the benefits of subsection (a) with respect to any return and such return is timely filed (determined after the application of such subsection), subsections (b)(3) and (e) of section 6611 shall not apply. (d) Modification of Treasury databases and information systems The Secretary shall update, as necessary, any database or information system of the Department of the Treasury in order to ensure that the provisions of subsection (a) are applied with respect to each applicable individual. (e) Refund and abatement of penalties and fines imposed prior to identification as applicable individual In the case of any applicable individual— (1) for whom any interest, penalty, additional amount, or addition to the tax in respect to any tax liability for any taxable year ending during the period described in subsection (a)(1) was assessed or collected, and (2) who was, subsequent to such assessment or collection, determined to be an individual described in subparagraph (A) or (B) of subsection (b)(1), the Secretary shall abate any such assessment and refund any amount collected to such applicable individual in the same manner as any refund of an overpayment of tax under section 6402.. (b) Clerical amendment The table of sections for chapter 77 is amended by inserting after the item relating to section 7510 the following new item: Sec. 7511. Time for performing certain acts postponed for hostages and individuals wrongfully detained abroad.. (c) Effective date The amendments made by this section shall apply to taxable years ending after the date of enactment of this Act.