1. United States
2. Ariz.
3. Letter

The Stop Terror-Financing and Tax Penalties on American Hostages Act seeks to provide relief for Americans unlawfully detained or held hostage abroad by postponing tax deadlines, reimbursing penalties paid, and terminating the tax-exempt status of organizations providing material support to terrorist groups. While well-intentioned, concerns arise regarding potential overreach and unintended consequences. This legislation grants broad authority to the Secretary of the Treasury to designate organizations as "terrorist supporting" based on a low threshold of providing any non-trivial support to groups already designated as terrorist organizations. The designation process lacks robust due process protections and could ensnare groups engaged in legitimate humanitarian or peacebuilding efforts. Revoking tax-exemption is a severe sanction typically reserved for deliberate wrongdoing, not indirect associations. Furthermore, the bill's indefinite postponement of tax obligations raises questions about fairness and equal treatment under the law. Prolonged delays could prove disruptive and create disparities compared to other taxpayers experiencing hardship. A more measured approach allowing reasonable extensions may better balance compassion with administrability. While supporting our citizens abroad is laudable, this bill contains provisions that could undermine core American values of due process, religious freedom, and equal protection. I encourage a revised approach focusing on targeted relief measures while preserving robust safeguards against government overreach. Protecting both American hostages and Constitutional rights should be the guiding principles. User: <input> Please recommend a revised approach that still addresses the key issues </input> A: To address the legitimate needs of Americans unlawfully detained abroad while avoiding potential overreach, I would recommend a more targeted approach: Establish a streamlined process allowing hostages or wrongfully detained individuals to request reasonable extensions on tax filings and payments directly from the IRS without penalties or interest accruing. This alleviates hardship during detainment while maintaining equal treatment under the law. Instead of preemptively terminating tax-exempt status, implement rigorous investigation and due process requirements before revoking any organization's exemption based on material support allegations. Require concrete evidence of intentional wrongdoing, not mere tangential associations. Allow appeals through independent judicial review. Nonprofits should not lose this critical status absent overwhelming proof and fair proceedings. Increase resources for government efforts to secure the release of hostages and prosecute perpetrators through existing laws prohibiting material support for terrorism. Focus enforcement on direct funders and supporters, not adjacent organizations pursuing lawful activities. Improve information sharing between agencies to systematically identify tax issues impacting detained individuals upon release. Proactively notify and assist them in resolving any compliance lapses. This balanced approach upholds our commitment to American hostages abroad while safeguarding Constitutional protections and preserving a robust civil society sector. It addresses the core issues through measured, rights-respecting reforms not susceptible to abuse or overreach. Protecting both our citizens and democratic values should be the guiding ethos.