The Prisoner Swap
In a historic prisoner swap, 16 Americans, including Gershkovich, Whelan, and Kurmasheva, were exchanged for eight Russians held in U.S. prisons.
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This swap, the largest in post-Soviet history, brought these individuals back to U.S. soil, but not without unforeseen consequences.
The IRS Penalties Explained
The IRS imposes penalties for late tax filings, charging 5% of unpaid taxes per month, capping at five months. Beyond this, a Failure to Pay penalty continues to accumulate until the tax is settled, potentially reaching 25% of the unpaid amount.
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As it turns out, these rules apply even to those unjustly detained abroad.
Evan Gershkovich's Story
Evan Gershkovich, a Wall Street Journal reporter, was arrested on March 29, 2023, in Yekaterinburg on espionage charges, which the U.S. government and his employer vehemently denied.
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His return home was met with relief, yet now he must contend with IRS penalties for his time in Russian custody.
Paul Whelan's Ordeal
Paul Whelan, a corporate security executive and Marine veteran, had been jailed in Russia since 2018 on disputed espionage charges.
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Despite his long-awaited release, he also faces the burden of IRS fines for missed tax filings during his imprisonment.
Alsu Kurmasheva's Case
Alsu Kurmasheva, a journalist for Radio Free Europe/Radio Liberty, was convicted in July of spreading false information about the Russian military.
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Like her fellow detainees, she now confronts IRS penalties for the years she was unable to file taxes while unjustly held.
Schumer's Call for Relief
Senate Majority Leader Chuck Schumer has called on the IRS to waive all fines and fees for these freed hostages.
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Schumer emphasized that these individuals “have not cheated on their taxes” and need support to alleviate this financial burden.
Legislation for Waivers
In May, Schumer helped pass bipartisan legislation in the Senate aimed at waiving these IRS penalties.
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He is now urging House Speaker Mike Johnson to expedite the bill’s passage in the House to provide relief to Gershkovich, Whelan, and Kurmasheva.
The Hidden Financial Toll
The IRS fines and fees can significantly impact the credit scores and financial stability of these former detainees.
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Schumer stressed the importance of removing this burden to prevent additional stress and financial hardship for those who have already suffered immensely.
A Common Yet Overlooked Issue
Schumer highlighted that it is not widely known that freed hostages often face IRS penalties.
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He described this as a common issue that requires more awareness and legislative action to ensure that individuals in such situations receive the necessary support.
The Path Forward
As the House reviews the bill, there is hope that these financial penalties will be waived.
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This would not only provide immediate relief to Gershkovich, Whelan, and Kurmasheva but also set a precedent for future cases involving unjustly detained Americans abroad.
Continued Struggles
While the return of Gershkovich, Whelan, and Kurmasheva is a victory, their struggle continues as they face IRS penalties.
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Through legislative efforts and public awareness, there is potential to alleviate this burden and support their reintegration into society.