Fix H.R. 9495
Threatening nonprofits in the U.S.
H.R. 9495 proposed tax relief for Americans wrongfully detained abroad but also grants the government broad power to revoke nonprofit tax-exempt status without due process. While the hostage relief is necessary, the nonprofit provisions could harm legitimate charities and must be fixed before passage.
H.R. 9495 was stopped in Congress
What was H.R. 9495?
The Stop Terror-Financing and Tax Penalties on American Hostages Act
H.R. 9495 provides tax relief for Americans wrongfully detained abroad and expands government authority to revoke nonprofit tax-exempt status. While the hostage relief is widely supported, the nonprofit provisions raise serious concerns about overreach, potentially allowing tax-exempt status to be revoked by our government with no proper or transparent due process.
What H.R. 9495 got right
It includes important provisions to protect American hostages.
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Protects Wrongfully Detained Americans Prevents IRS tax penalties for U.S. citizens held hostage abroad.
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Blocks Terrorist Financing
Stops organizations supporting terrorism from receiving tax-exempt status.
Why H.R. 9495 was concerning
The bill’s broad nonprofit penalties risk unintended harm to nonprofits.
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Threatens Nonprofits
Grants our government broad power to revoke a nonprofit’s tax-exempt status without any clear due process, putting legitimate nonprofit organizations at risk of losing their ability to operate.
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Lacks Transparency & Oversight
Allows tax-exempt status to be stripped without requiring public disclosure or a neutral review process, raising concerns about misuse and political persecution of progressive organizations.
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Discourages Charitable Giving
Creates uncertainty for donors who may fear supporting organizations that could be unfairly penalized, ultimately harming nonprofits and the communities they serve.
