SEC. 3. REFUND AND ABATEMENT OF PENALTIES AND 
FINES PAID BY ELIGIBLE INDIVIDUALS. 
(a) IN GENERAL.—Section 7511 of the Internal Rev-
enue Code of 1986, as added by section 2, is amended 
by adding at the end the following new subsection: 
‘‘(e) REFUND AND ABATEMENT OF PENALTIES AND 
FINES PAID BY ELIGIBLE INDIVIDUALS WITH RESPECT 
TO PERIODS PRIOR TO DATE OF ENACTMENT OF THIS 
SECTION.— 
‘‘(1) IN GENERAL.— 
‘‘(A) ESTABLISHMENT.—Not later than 
January 1, 2025, the Secretary (in consultation 
with the Secretary of State and the Attorney 
General) shall establish a program to allow any 
eligible individual (or the spouse or any depend-
ent (as defined in section 152) of such indi-
vidual) to apply for a refund or an abatement 
of any amount described in paragraph (2) (in-
cluding interest) to the extent such amount was 
attributable to the applicable period. 
‘‘(B) IDENTIFICATION OF INDIVIDUALS.— 
Not later than January 1, 2025, the Secretary 
of State and the Attorney General, acting 
through the Hostage Recovery Fusion Cell (as 
described in section 304 of the Robert Levinson 
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Hostage Recovery and Hostage-Taking Ac-
countability Act (22 U.S.C. 1741b)), shall— 
‘‘(i) compile a list, based on such in-
formation as is available, of individuals 
who were applicable individuals during the 
applicable period, and 
‘‘(ii) provide the list described in 
clause (i) to the Secretary. 
‘‘(C) NOTICE.—For purposes of carrying 
out the program described in subparagraph (A), 
the Secretary (in consultation with the Sec-
retary of State and the Attorney General) shall, 
with respect to any individual identified under 
subparagraph (B), provide notice to such indi-
vidual— 
‘‘(i) in the case of an individual who 
has been released on or before the date of 
enactment of this subsection, not later 
than 90 days after the date of enactment 
of this subsection, or 
‘‘(ii) in the case of an individual who 
is released after the date of enactment of 
this subsection, not later than 90 days 
after the date on which such individual is 
released, 
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that such individual may be eligible for a refund 
or an abatement of any amount described in 
paragraph (2) pursuant to the program de-
scribed in subparagraph (A). 
‘‘(D) AUTHORIZATION.— 
‘‘(i) IN GENERAL.—Subject to clause 
(ii), in the case of any refund described in 
subparagraph (A), the Secretary shall 
issue such refund to the eligible individual 
in the same manner as any refund of an 
overpayment of tax. 
‘‘(ii) EXTENSION OF LIMITATION ON 
TIME FOR REFUND.—With respect to any 
refund under subparagraph (A)— 
‘‘(I) the 3-year period of limita-
tion prescribed by section 6511(a) 
shall be extended until the end of the 
1-year period beginning on the date 
that the notice described in subpara-
graph (C) is provided to the eligible 
individual, and 
‘‘(II) any limitation under section 
6511(b)(2) shall not apply. 
‘‘(2) ELIGIBLE INDIVIDUAL.—For purposes of 
this subsection, the term ‘eligible individual’ means 
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any applicable individual who, for any taxable year 
ending during the applicable period, paid or incurred 
any interest, penalty, additional amount, or addition 
to the tax in respect to any tax liability for such 
year of such individual based on a determination 
that an act described in section 7508(a)(1) which 
was not performed by the time prescribed therefor 
(without regard to any extensions). 
‘‘(3) APPLICABLE
PERIOD.—For purposes of 
this subsection, the term ‘applicable period’ means 
the period— 
‘‘(A) beginning on January 1, 2021, and 
‘‘(B) ending on the date of enactment of 
this subsection.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to taxable years ending on or be-
fore the date of enactment of this Act. 
SEC. 4. TERMINATION OF TAX-EXEMPT STATUS OF TER-
RORIST SUPPORTING ORGANIZATIONS. 
(a) IN GENERAL.—Section 501(p) of the Internal 
Revenue Code of 1986 is amended by adding at the end 
the following new paragraph: 
‘‘(8) APPLICATION TO TERRORIST SUPPORTING 
ORGANIZATIONS.— 
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‘‘(A) IN GENERAL.—For purposes of this 
subsection, in the case of any terrorist sup-
porting organization— 
‘‘(i) such organization (and the des-
ignation of such organization under sub-
paragraph (B)) shall be treated as de-
scribed in paragraph (2), and 
‘‘(ii) the period of suspension de-
scribed in paragraph (3) with respect to 
such organization shall be treated as begin-
ning on the date that the Secretary des-
ignates such organization under subpara-
graph (B) and ending on the date that the 
Secretary rescinds such designation under 
subparagraph (D). 
‘‘(B) TERRORIST SUPPORTING ORGANIZA-
TION.—For purposes of this paragraph, the 
term ‘terrorist supporting organization’ means 
any organization which is designated by the 
Secretary as having provided, during the 3-year 
period ending on the date of such designation, 
material support or resources (within the mean-
ing of section 2339B of title 18, United States 
Code) to an organization described in para-
graph (2) (determined after the application of 
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this paragraph to such organization) in excess 
of a de minimis amount. 
‘‘(C) DESIGNATION PROCEDURE.— 
‘‘(i) NOTICE REQUIREMENT.—Prior to 
designating any organization as a terrorist 
supporting organization under subpara-
graph (B), the Secretary shall mail to the 
most recent mailing address provided by 
such organization on the organization’s an-
nual return or notice under section 6033 
(or subsequent form indicating a change of 
address) a written notice which includes— 
‘‘(I) a statement that the Sec-
retary will designate such organization 
as a terrorist supporting organization 
unless the organization satisfies the 
requirements of subclause (I) or (II) 
of clause (ii), 
‘‘(II) the name of the organiza-
tion or organizations with respect to 
which the Secretary has determined 
such organization provided material 
support or sources as described in 
subparagraph (B), and 
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material support or resources referred to 
in subparagraph (B) were provided, the pe-
riods of suspension under paragraph (3) 
have ended. 
A certification described in the matter pre-
ceding subclause (I) of clause (II) shall not be 
treated as valid if the organization making such 
certification has provided any other such certifi-
cation during the preceding 5 years. 
‘‘(E) ADMINISTRATIVE REVIEW BY INTER-
NAL REVENUE SERVICE INDEPENDENT OFFICE 
OF APPEALS.—In the case of the designation of 
an organization by the Secretary as a terrorist 
supporting organization under subparagraph 
(B), a dispute regarding such designation shall 
be subject to resolution by the Internal Revenue 
Service Independent Office of Appeals under 
section 7803(e) in the same manner as if such 
designation were made by the Internal Revenue 
Service and paragraph (5) of this subsection 
did not apply. 
‘‘(F) JURISDICTION
OF
UNITED
STATES 
COURTS.—Notwithstanding paragraph (5), the 
United States district courts shall have exclu-
sive jurisdiction to review a final determination 
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with respect to an organization’s designation as 
a terrorist supporting organization under sub-
paragraph (B). In the case of any such deter-
mination which was based on classified informa-
tion (as defined in section 1(a) of the Classified 
Information Procedures Act), such information 
may be submitted to the reviewing court ex 
parte and in camera. For purposes of this sub-
paragraph, a determination with respect to an 
organization’s designation as a terrorist sup-
porting organization shall not fail to be treated 
as a final determination merely because such 
organization fails to utilize the dispute resolu-
tion process of the Internal Revenue Service 
Independent Office of Appeals provided under 
subparagraph (E).’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this subsection shall apply to designations made after the 
date of the enactment of this Act in taxable years ending 
after such date. 
Æ 
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