Business

Evan Gershkovich, freed Americans now face IRS fines, fees for time they were Russia’s hostages

As the three Americans freed from Russia in a prisoner swap deal last week settle back into their lives in the U.S., they now face a different kind of challenge: IRS fines and fees racked up during the time they were Russian hostages.

Senate Majority Leader Chuck Schumer on Sunday spoke to reporters about the IRS burden, which he termed a “little known fact,” that Evan Gershkovich, Paul Whelan and Alsu Kurmasheva will each face now that they have returned to the U.S.

“Each of these freed hostages will have fines and fees from the IRS,” Schumer said. “Now that they’re back home, they’ll need help from the IRS back here at home because they have, in some cases, had no years of IRS filings that lead to fines, fees and payback. It’s not something you think of, but it happens all the time. We know that these people have not cheated on their taxes.”

According to the IRS’ Failure to File penalty, those who fail to file will owe 5% of the unpaid taxes for each month that a tax return is late, maxing out after five months. After that period, a Failure to Pay penalty will continue until the tax is paid, up to a maximum of 25% of the unpaid tax.

FREED AMERICAN PRISONERS GERSHKOVICH AND WHELAN MAY FACE ‘DISRUPTIVE’ TRAUMA, SAY MENTAL HEALTH EXPERTS

Evan Gershkovich, Paul Whelan and Alsu Kurmasheva

Alsu Kurmasheva, Paul Whelan, center, and Evan Gershkovich, right, were released from detention in Russia last week. (REUTERS/Kaylee Greenlee Beal / Reuters)

The IRS charges interest on penalties, according to its website.

Schumer called on the IRS to waive all fines and fees for the three Americans who he says “suffered so long at the brutal hands of Vladimir Putin.”

“We want to make sure that a burden like this, the IRS fines and fees that could hurt their credit and cause stress is totally removed,” the senator from New York said.

Evan Gershkovich, Paul Whelan and Alsu Kurmasheva

Gershkovich, Whelan and Kurmasheva face potential IRS fines and fees for unpaid tax filings during the time they were held in Russia. (REUTERS/Kaylee Greenlee Beal / Reuters)

The IRS told Fox Digital in a statement on Monday that the agency is ready to work with affected families.

“The IRS is committed to working with any individual who has been held hostage or unlawfully detained to resolve any tax issues that may arise from these heart-wrenching and unconscionable situations,” the IRS statement said. “Because of federal privacy laws, we can’t comment on anyone’s particular tax situation. As we have in previous situations, the IRS is fully prepared to work with affected tax filers and their families – as well as Congress – to provide the maximum penalty relief and any other appropriate accommodation available under federal law.”

Schumer said that he helped pass bipartisan legislation to do just that in the Senate in May, and now called on House Speaker Mike Johnson to get it passed in the House as quickly as possible.

Johnson’s office told Fox Digital on Monday morning that they are looking at the bill.

BEHIND THE SCENES OF THE PRISONER SWAP TO FREE WSJ REPORTER EVAN GERSHKOVICH FROM RUSSIAN PRISON

Gershkovich, Whelan and Kurmasheva were among 16 people imprisoned in Russia that were swapped for eight Russians held prisoner – the biggest prisoner swap in post-Soviet history.

Gershkovich, a 32-year-old Wall Street Journal reporter, was arrested on March 29, 2023, while reporting on a trip to the Ural Mountains city of Yekaterinburg and was accused of espionage. The Biden administration declared him “wrongfully detained,” and The Wall Street Journal and U.S. government both emphatically denied the charges, calling them absurd on their face. 

Whelan, a Michigan corporate security executive and Marine veteran, was jailed since 2018 on espionage charges that both he and Washington have denied.

GET FOX BUSINESS ON THE GO BY CLICKING HERE

Kurmasheva, a Russian-American journalist, was convicted in July of spreading false information about the Russian military. Both her family and employer, Radio Free Europe/Radio Liberty, rejected the charges.

Related posts

FTC says it won’t ‘hesitate to crack down’ on harmful business practices involving AI

Daily

The cost of buying a house hit another record high as mortgage rates spike again

Daily

Barclays bank branch closure leaves woman ‘stressed’ and ‘frustrated’ | Personal Finance | Finance