“A bill 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 amends Section 501(p) of the Internal Revenue Code of 1986 by adding a new paragraph (8) to suspend the tax-exempt status of terrorist supporting organizations, treating them as described in paragraph (2) (i.e., organizations designated as supporting terrorism) with the suspension period beginning on the date of designation by the Secretary of the Treasury and ending on rescission. (As background, Section 501(p) suspends tax-exempt status, including ineligibility for tax-deductible contributions, for certain organizations linked to terrorism.) A terrorist supporting organization is any tax-exempt organization designated by the Secretary for providing, during the prior 3-year period, material support or resources exceeding a de minimis amount to a foreign terrorist organization (as defined in 18 U.S.C. §2339B), with "material support or resources" defined per 18 U.S.C. §2339B(g)(4) but excluding State Department-approved support or Office of Foreign Assets Control-approved humanitarian aid. Prior to designation, the Secretary must provide written notice of the basis (with possible national security redactions) and a 90-day opportunity to cure by demonstrating no support was provided, certifying efforts to return resources and no future support (limited to once every 5 years), or challenging redactions in federal court; rescission is required if the designation is erroneous, notice was not received and cure requirements are met, or the supported organization's suspension ends, with disputes subject to review by the IRS Independent Office of Appeals.