A bill 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 label a tax-exempt organization a "terrorist supporting organization" if it gave more than a minimal amount of material support or resources to a designated terrorist organization in the prior 3 years. A labeled organization would have its tax-exempt status suspended until the label is removed. Before applying the label, the Secretary must mail a notice and give the organization 90 days to show it did not give the support, try to recover the support and promise not to give more, or challenge withheld information in federal court. Aid approved by the State Department or humanitarian aid approved by the Office of Foreign Assets Control would not count. Organizations could appeal through the IRS Independent Office of Appeals and federal district courts, which could review classified information privately.

Full text and official record on Congress.gov

Sponsors

• John Cornyn Republican sponsor
• 2 cosponsors