“To amend the Internal Revenue Code of 1986 to terminate the tax-exempt status of terrorist supporting organizations.”
No CRS summary available for this bill.
This section establishes in IRC §501(p) a new paragraph (8) designating as "terrorist supporting organizations" any tax-exempt organization that the Treasury Secretary determines provided material support or resources (as defined in 18 USC 2339B(g)(4), excluding State Department-approved support or OFAC-approved humanitarian aid) exceeding a de minimis amount to a designated foreign terrorist organization during the prior three years, treating such organizations as specified in §501(p)(2) and suspending their tax-exempt status from the designation date until rescission. (As background, §501(p) suspends tax-exempt status, and related tax benefits, for organizations designated as supporting terrorism.) The Secretary must provide prior written notice of proposed designation—including the recipient organization(s) and support description (unless withheld for national security reasons)—and allow a 90-day period for the organization to demonstrate no support occurred, certify return efforts and no future support (limited to once every five years), or challenge withheld information in district court; rescission occurs if the designation is erroneous, notice was not received and cure requirements are met, or the recipient organization's suspension ends. Designations are subject to administrative review by the IRS Independent Office of Appeals.