I 

118TH CONGRESS 

1ST SESSION H. R. 6408 

To amend the Internal Revenue Code of 1986 to terminate the tax-exempt 

status of terrorist supporting organizations. 

IN THE HOUSE OF REPRESENTATIVES 

NOVEMBER 14, 2023 

Mr. KUSTOFF (for himself and Mr. SCHNEIDER) introduced the following bill; 

which was referred to the Committee on Ways and Means 

A BILL 

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, 

3 SECTION 1. TERMINATION OF TAX-EXEMPT STATUS OF 

4 TERRORIST SUPPORTING ORGANIZATIONS. 

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

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

7 the following new paragraph: 

8 ‘‘(8) APPLICATION TO TERRORIST SUPPORTING

9 ORGANIZATIONS.— 


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

2 subsection, in the case of any terrorist sup3 porting organization— 

4 ‘‘(i) such organization (and the des5 ignation of such organization under sub6 paragraph (B)) shall be treated as de7 scribed in paragraph (2), and 

8 ‘‘(ii) the period of suspension de9 scribed in paragraph (3) with respect to 

10 such organization shall be treated as begin11 ning on the date that the Secretary des12 ignates such organization under subpara13 graph (B) and ending on the date that the 

14 Secretary rescinds such designation under 

15 subparagraph (D). 

16 ‘‘(B) TERRORIST SUPPORTING ORGANIZA17 TION.—For purposes of this paragraph, the 

18 term ‘terrorist supporting organization’ means 

19 any organization which is designated by the 

20 Secretary as having provided, during the 3-year 

21 period ending on the date of such designation, 

22 material support or resources (within the mean23 ing of section 2339B of title 18, United States 

24 Code) to an organization described in para25 graph (2) (determined after the application of 


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1 this paragraph to such organization) in excess 

2 of a de minimis amount. 

3 ‘‘(C) DESIGNATION PROCEDURE.— 

4 ‘‘(i) NOTICE REQUIREMENT.—Prior to 

5 designating any organization as a terrorist 

6 supporting organization under subpara7 graph (B), the Secretary shall mail to the 

8 most recent mailing address provided by 

9 such organization on the organization’s an10 nual return under section 6033 (or subse11 quent form indicating a change of address) 

12 a written notice which includes— 

13 ‘‘(I) a statement that the Sec14 retary will designate such organization 

15 as a terrorist supporting organization 

16 unless the organization satisfies the 

17 requirements of subclause (I) or (II) 

18 of clause (ii), 

19 ‘‘(II) the name of the organiza20 tion or organizations with respect to 

21 which the Secretary has determined 

22 such organization provided material 

23 support or sources as described in 

24 subparagraph (B), and 


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1 ‘‘(III) a description of such mate2 rial support or resources. 

3 ‘‘(ii) OPPORTUNITY TO CURE.—In the 

4 case of any notice provided to an organiza5 tion under clause (i), the Secretary shall, 

6 at the close of the 90-day period beginning 

7 on the date that such notice was sent, des8 ignate such organization as a terrorist or9 ganization under subparagraph (B) if (and 

10 only if) such organization has not (during 

11 such period)— 

12 ‘‘(I) demonstrated to the satisfac13 tion of the Secretary that such organi14 zation did not provide the material 

15 support or resources referred to in 

16 subparagraph (B), or 

17 ‘‘(II) made reasonable efforts to 

18 have such support or resources re19 turned to such organization and cer20 tified in writing to the Secretary that 

21 such organization will not provide any 

22 further support or resources to orga23 nizations described in paragraph (2). 

24 A certification under subclause (II) shall 

25 not be treated as valid if the organization 


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1 making such certification has provided any 

2 other such certification during the pre3 ceding 5 years. 

4 ‘‘(D) RESCISSION.—The Secretary shall re5 scind a designation under subparagraph (B) if 

6 (and only if)— 

7 ‘‘(i) the Secretary determines that 

8 such designation was erroneous, 

9 ‘‘(ii) after the Secretary receives a 

10 written certification from an organization 

11 that such organization did not receive the 

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

13 ‘‘(I) the Secretary determines 

14 that it is reasonable to believe that 

15 such organization did not receive such 

16 notice, and 

17 ‘‘(II) such organization satisfies 

18 the requirements of subclause (I) or 

19 (II) of subparagraph (C)(ii) (deter20 mined after taking into account the 

21 last sentence thereof), or 

22 ‘‘(iii) the Secretary determines, with 

23 respect to all organizations to which the 

24 material support or resources referred to 

25 in subparagraph (B) were provided, the peVerDate Sep 11 2014 22:44 Nov 22, 2023 Jkt 049200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H6408.IH H6408

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1 riods of suspension under paragraph (3) 

2 have ended. 

3 A certification described in the matter pre4 ceding subclause (I) of clause (II) shall not be 

5 treated as valid if the organization making such 

6 certification has provided any other such certifi7 cation during the preceding 5 years.’’. 

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

9 this section shall apply to designations made after the date 

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

11 such date. 

Æ 


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