To amend the Internal Revenue Code of 1986 to terminate the tax-exempt status of terrorist supporting organizations.

This bill would let the Treasury Secretary designate a tax-exempt organization as a "terrorist supporting organization" if it gave more than a small amount of material support or resources to a terrorist organization during the prior 3 years. A designated organization's tax-exempt status would be suspended until the designation is rescinded. Before designating, the Secretary must mail a written notice and give the organization 90 days to show it did not provide the support, or to try to get the support returned and certify it will not give more. Humanitarian aid approved by the Office of Foreign Assets Control would not count as support. Organizations could dispute a designation through the IRS Independent Office of Appeals and in federal district court.

Full text and official record on Congress.gov

Sponsors

• David Kustoff Republican sponsor
• 0 cosponsors