Part oftaxes →

HR9431FEDERALIN_COMMITTEE

Proposed Tax Relief for Wrongfully Detained Americans

Original title: Hostage Private Debt Tax Freedom Act

August 30, 2024

taxes hostages federal-legislation debt-relief

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Where This Stands

Introduced

Committee

Floor Vote

Passed

Signed

Currently IN_COMMITTEE. The next step in the legislative lifecycle is Floor Vote.

Version history

Only one version on file - nothing to compare yet. As later stages (committee substitute, engrossed, enrolled) are captured, the redline appears here.

View official text →

The Frame

What this does

If passed, this bill prevents individuals who were wrongfully detained abroad from facing unexpected federal income tax bills on debts that were forgiven during or shortly after their detention.

Who is mentioned in the record

Potentially affected actors named in the source documents. Mention is not a position.

U.S. nationals wrongfully detained abroad

These individuals become eligible to exclude up to $5,000 of discharged debt from their taxable income.

Spouses of wrongfully detained individuals

Spouses are included in the eligibility for the $5,000 debt discharge tax exclusion.

What changed

Current stage: IN_COMMITTEE.

What's next

Floor Vote.

Background

The Robert Levinson Hostage Recovery and Hostage-Taking Accountability Act was signed into law in 2020 to improve the U.S. government's response to hostage-taking and wrongful detention of U.S. nationals abroad. context

Summary

This bill would allow U.S. citizens who have been wrongfully detained abroad to exclude forgiven debt from their taxable income. It provides a lifetime tax exemption for up to $5,000 of discharged debt for these individuals and their spouses.

Key Facts

You don't have to trust us. Each fact below is taken straight from the official document - click any one to see the exact passage, highlighted in the original.

Frequently Asked Questions

Who qualifies as a 'wrongfully detained abroad individual'?

A U.S. national for whom the Secretary of State has determined there is credible information of wrongful or unlawful detention abroad, as defined by the Robert Levinson Hostage Recovery and Hostage-Taking Accountability Act.

Does this apply to my spouse's debt?

Yes, the bill allows the exclusion to apply to the individual and their spouse, subject to the $5,000 lifetime aggregate limit.

Is this retroactive?

Yes, the provisions apply to debt discharges that occurred after December 31, 2023.

Why It Matters

If passed, this bill prevents individuals who were wrongfully detained abroad from facing unexpected federal income tax bills on debts that were forgiven during or shortly after their detention.

News Coverage

No news coverage found yet. Articles are indexed twice daily.

Connected Entities

organizationSecretary of State“Determines if a U.S. national is wrongfully detained”Map →

bill_numberRobert Levinson Hostage Recovery and Hostage-Taking Accountability Act“Defines 'United States national'”Map →

personMr. Gottheimer“Co-sponsored the bill”Map →

personMr. Bacon“Introduced the bill”Map →

personUnited States nationals“Individuals subject to the bill's provisions”Map →

organizationU.S. Government Publishing Office“Source of the bill”Map →

Analysis Score

0–100

Significance40
How much this matters to a regular citizen
Controversy10
Intensity of disagreement among stakeholders
Entertainment5
Compellingness for a non-policy-wonk reader
Buzz15
Current news / social attention level

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