IIB 

118TH CONGRESS 

2D SESSION H. R. 6408 

IN THE SENATE OF THE UNITED STATES 

APRIL 16, 2024 

Received; read twice and referred to the Committee on Finance 

AN ACT 

To amend the Internal Revenue Code of 1986 to terminate 

the tax-exempt status of terrorist supporting organizations. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 


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1 SECTION 1. TERMINATION OF TAX-EXEMPT STATUS OF 

2 TERRORIST SUPPORTING ORGANIZATIONS. 

3 (a) IN GENERAL.—Section 501(p) of the Internal 

4 Revenue Code of 1986 is amended by adding at the end 

5 the following new paragraph: 

6 ‘‘(8) APPLICATION TO TERRORIST SUPPORTING

7 ORGANIZATIONS.— 

8 ‘‘(A) IN GENERAL.—For purposes of this 

9 subsection, in the case of any terrorist sup10 porting organization— 

11 ‘‘(i) such organization (and the des12 ignation of such organization under sub13 paragraph (B)) shall be treated as de14 scribed in paragraph (2), and 

15 ‘‘(ii) the period of suspension de16 scribed in paragraph (3) with respect to 

17 such organization shall be treated as begin18 ning on the date that the Secretary des19 ignates such organization under subpara20 graph (B) and ending on the date that the 

21 Secretary rescinds such designation under 

22 subparagraph (D). 

23 ‘‘(B) TERRORIST SUPPORTING ORGANIZA24 TION.—For purposes of this paragraph, the 

25 term ‘terrorist supporting organization’ means 

26 any organization which is designated by the 


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1 Secretary as having provided, during the 3-year 

2 period ending on the date of such designation, 

3 material support or resources (within the mean4 ing of section 2339B of title 18, United States 

5 Code) to an organization described in para6 graph (2) (determined after the application of 

7 this paragraph to such organization) in excess 

8 of a de minimis amount. 

9 ‘‘(C) DESIGNATION PROCEDURE.— 

10 ‘‘(i) NOTICE REQUIREMENT.—Prior to 

11 designating any organization as a terrorist 

12 supporting organization under subpara13 graph (B), the Secretary shall mail to the 

14 most recent mailing address provided by 

15 such organization on the organization’s an16 nual return or notice under section 6033 

17 (or subsequent form indicating a change of 

18 address) a written notice which includes— 

19 ‘‘(I) a statement that the Sec20 retary will designate such organization 

21 as a terrorist supporting organization 

22 unless the organization satisfies the 

23 requirements of subclause (I) or (II) 

24 of clause (ii), 


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1 ‘‘(II) the name of the organiza2 tion or organizations with respect to 

3 which the Secretary has determined 

4 such organization provided material 

5 support or sources as described in 

6 subparagraph (B), and 

7 ‘‘(III) a description of such mate8 rial support or resources to the extent 

9 consistent with national security and 

10 law enforcement interests. 

11 ‘‘(ii) OPPORTUNITY TO CURE.—In the 

12 case of any notice provided to an organiza13 tion under clause (i), the Secretary shall, 

14 at the close of the 90-day period beginning 

15 on the date that such notice was sent, des16 ignate such organization as a terrorist sup17 porting organization under subparagraph 

18 (B) if (and only if) such organization has 

19 not (during such period)— 

20 ‘‘(I) demonstrated to the satisfac21 tion of the Secretary that such organi22 zation did not provide the material 

23 support or resources referred to in 

24 subparagraph (B), or 


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1 ‘‘(II) made reasonable efforts to 

2 have such support or resources re3 turned to such organization and cer4 tified in writing to the Secretary that 

5 such organization will not provide any 

6 further support or resources to orga7 nizations described in paragraph (2). 

8 A certification under subclause (II) shall 

9 not be treated as valid if the organization 

10 making such certification has provided any 

11 other such certification during the pre12 ceding 5 years. 

13 ‘‘(D) RESCISSION.—The Secretary shall re14 scind a designation under subparagraph (B) if 

15 (and only if)— 

16 ‘‘(i) the Secretary determines that 

17 such designation was erroneous, 

18 ‘‘(ii) after the Secretary receives a 

19 written certification from an organization 

20 that such organization did not receive the 

21 notice described in subparagraph (C)(i)— 

22 ‘‘(I) the Secretary determines 

23 that it is reasonable to believe that 

24 such organization did not receive such 

25 notice, and 


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1 ‘‘(II) such organization satisfies 

2 the requirements of subclause (I) or 

3 (II) of subparagraph (C)(ii) (deter4 mined after taking into account the 

5 last sentence thereof), or 

6 ‘‘(iii) the Secretary determines, with 

7 respect to all organizations to which the 

8 material support or resources referred to 

9 in subparagraph (B) were provided, the pe10 riods of suspension under paragraph (3) 

11 have ended. 

12 A certification described in the matter pre13 ceding subclause (I) of clause (II) shall not be 

14 treated as valid if the organization making such 

15 certification has provided any other such certifi16 cation during the preceding 5 years. 

17 ‘‘(E) ADMINISTRATIVE REVIEW BY INTER18 NAL REVENUE SERVICE INDEPENDENT OFFICE

19 OF APPEALS.—In the case of the designation of 

20 an organization by the Secretary as a terrorist 

21 supporting organization under subparagraph 

22 (B), a dispute regarding such designation shall 

23 be subject to resolution by the Internal Revenue 

24 Service Independent Office of Appeals under 

25 section 7803(e) in the same manner as if such 


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1 designation were made by the Internal Revenue 

2 Service and paragraph (5) of this subsection 

3 did not apply. 

4 ‘‘(F) JURISDICTION OF UNITED STATES

5 COURTS.—Notwithstanding paragraph (5), the 

6 United States district courts shall have exclu7 sive jurisdiction to review a final determination 

8 with respect to an organization’s designation as 

9 a terrorist supporting organization under sub10 paragraph (B). In the case of any such deter11 mination which was based on classified informa12 tion (as defined in section 1(a) of the Classified 

13 Information Procedures Act), such information 

14 may be submitted to the reviewing court ex 

15 parte and in camera. For purposes of this sub16 paragraph, a determination with respect to an 

17 organization’s designation as a terrorist sup18 porting organization shall not fail to be treated 

19 as a final determination merely because such 

20 organization fails to utilize the dispute resolu21 tion process of the Internal Revenue Service 

22 Independent Office of Appeals provided under 

23 subparagraph (E).’’. 

24 (b) EFFECTIVE DATE.—The amendment made by 

25 this section shall apply to designations made after the date 


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1 of the enactment of this Act in taxable years ending after 

2 such date. 

Passed the House of Representatives April 15, 2024. 

Attest: KEVIN F. MCCUMBER, 

Clerk. 


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