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. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
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SECTION 1. TERMINATION OF TAX-EXEMPT STATUS OF 
TERRORIST 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.— 
‘‘(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 
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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 
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), 
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‘‘(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 
‘‘(III) a description of such mate-
rial support or resources to the extent 
consistent with national security and 
law enforcement interests. 
‘‘(ii) OPPORTUNITY TO CURE.—In the 
case of any notice provided to an organiza-
tion under clause (i), the Secretary shall, 
at the close of the 90-day period beginning 
on the date that such notice was sent, des-
ignate such organization as a terrorist sup-
porting organization under subparagraph 
(B) if (and only if) such organization has 
not (during such period)— 
‘‘(I) demonstrated to the satisfac-
tion of the Secretary that such organi-
zation did not provide the material 
support or resources referred to in 
subparagraph (B), or 
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‘‘(II) made reasonable efforts to 
have such support or resources re-
turned to such organization and cer-
tified in writing to the Secretary that 
such organization will not provide any 
further support or resources to orga-
nizations described in paragraph (2). 
A certification under subclause (II) shall 
not be treated as valid if the organization 
making such certification has provided any 
other such certification during the pre-
ceding 5 years. 
‘‘(D) RESCISSION.—The Secretary shall re-
scind a designation under subparagraph (B) if 
(and only if)— 
‘‘(i) the Secretary determines that 
such designation was erroneous, 
‘‘(ii) after the Secretary receives a 
written certification from an organization 
that such organization did not receive the 
notice described in subparagraph (C)(i)— 
‘‘(I) the Secretary determines 
that it is reasonable to believe that 
such organization did not receive such 
notice, and 
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‘‘(II) such organization satisfies 
the requirements of subclause (I) or 
(II) of subparagraph (C)(ii) (deter-
mined after taking into account the 
last sentence thereof), or 
‘‘(iii) the Secretary determines, with 
respect to all organizations to which the 
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 
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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 
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 section shall apply to designations made after the date 
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of the enactment of this Act in taxable years ending after 
such date. 
Passed the House of Representatives April 15, 2024. 
Attest: 
KEVIN F. MCCUMBER, 
Clerk. 
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