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. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
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.— 
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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 under section 6033 (or subse-
quent 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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‘‘(III) a description of such mate-
rial support or resources. 
‘‘(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 or-
ganization 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 
‘‘(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 
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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 
‘‘(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-
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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.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section 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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