1. United States
2. Calif.
3. Letter

The proposed Stop Terror-Financing and Tax Penalties on American Hostages Act seeks to protect U.S. nationals who are unlawfully or wrongfully detained or held hostage abroad by postponing tax deadlines, reimbursing paid late fees, and terminating the tax-exempt status of organizations providing material support to terrorist groups. While well-intentioned, the measure raises concerns about potential overreach and unintended consequences. The bill aims to assist Americans facing extraordinarily difficult circumstances by granting tax relief and penalty waivers. However, the broad authority granted to the Secretary of the Treasury to designate "terrorist supporting organizations" and unilaterally revoke their tax-exempt status without due process safeguards is troubling. This provision could be exploited to target lawful organizations based on tenuous associations or politically motivated designations. Moreover, the expansive information sharing requirements between executive agencies and the IRS blur the line between law enforcement and tax administration functions, potentially compromising taxpayer privacy and civil liberties. While combating terrorism financing is a legitimate goal, this approach may prove counterproductive by driving suspect organizations further underground and impeding investigations. Rather than hastily enacting far-reaching policies that could undermine democratic principles, a more prudent course would be to strengthen existing laws through targeted amendments bolstering oversight, transparency and accountability mechanisms. I urge you to carefully reevaluate this bill and explore alternative measures that balance national security with the preservation of constitutional rights and the rule of law.