To amend the Internal Revenue Code of 1986 to terminate the tax-exempt status of terrorist supporting organizations.

Bill: 118-hr-6408
Sponsor: full_name: Rep. Kustoff, David [R-TN-8]
Introduced: 2023-11-14
Policy area: Taxation
Subjects: Administrative remedies

Internal Revenue Service (IRS)

Judicial review and appeals

Tax-exempt organizations

Terrorism
Latest action: action_date: 2024-04-16
text: Received in the Senate and Read twice and referred to the Committee on Finance.

Summaries:
action_date: 2023-11-14
action_desc: Introduced in House
text: <p>This bill suspends the tax-exempt status of a terrorist supporting organization. The bill defines<em> terrorist supporting organization</em> as any organization designated as having provided (during the three-year period prior to its designation) material support or resources to a terrorist organization in excess of a <em>de minimis </em>amount. </p> <p>The Department of the Treasury must provide notice to such an organization of its impending designation and an opportunity to cure. Treasury must rescind a designation that it determines was erroneous or if the organization did not receive notice of designation.</p>

action_date: 2023-12-19
action_desc: Reported to House
text: <p>This bill suspends the tax-exempt status of a terrorist supporting organization. The bill defines<em> terrorist supporting organization</em> as any organization designated as having provided (during the three-year period prior to its designation) material support or resources to a terrorist organization in excess of a <em>de minimis </em>amount. </p> <p>The Department of the Treasury must provide notice to such an organization of its impending designation and an opportunity to cure. Treasury must rescind a designation that it determines was erroneous or if the organization did not receive notice of designation.</p> <p>The bill provides for administrative review by the Internal Revenue Service Independent Office of Appeals of any dispute regarding a designation of an organization as a terrorist supporting organization. The U.S. district courts shall have exclusive jurisdiction to review any such designation.</p>

action_date: 2024-04-15
action_desc: Passed House
text: <p>This bill suspends the tax-exempt status of terrorist supporting organizations. The bill defines <em>terrorist supporting organization</em> as any organization designated as having provided (during the three-year period prior to its designation) material support or resources to a terrorist organization in excess of a <em>de minimis</em> amount.</p><p>The Department of the Treasury must provide notice to such organizations of the impending designation and an opportunity to cure. Treasury must rescind a designation that it determines was erroneous or if the organization did not receive notice of designation.&nbsp;</p><p>The bill provides for administrative review by the Internal Revenue Service Independent Office of Appeals of any dispute regarding a designation of an organization as a terrorist supporting organization. The U.S. district courts shall have exclusive jurisdiction to review any such designation.&nbsp;</p>

tv_txt: 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. 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 supporting organization— (i) such organization (and the designation of such organization under subparagraph (B)) shall be treated as described in paragraph (2), and (ii) the period of suspension described in paragraph (3) with respect to such organization shall be treated as beginning on the date that the Secretary designates such organization under subparagraph (B) and ending on the date that the Secretary rescinds such designation under subparagraph (D). (B) Terrorist supporting organization 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 meaning of section 2339B of title 18, United States Code) to an organization described in paragraph (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 subparagraph (B), the Secretary shall mail to the most recent mailing address provided by such organization on the organization’s annual return or notice under section 6033 (or subsequent form indicating a change of address) a written notice which includes— (I) a statement that the Secretary 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 organization 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 material 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 organization under clause (i), the Secretary shall, at the close of the 90-day period beginning on the date that such notice was sent, designate such organization as a terrorist supporting organization under subparagraph (B) if (and only if) such organization has not (during such period)— (I) demonstrated to the satisfaction of the Secretary that such organization did not provide the material support or resources referred to in subparagraph (B), or (II) made reasonable efforts to have such support or resources returned to such organization and certified in writing to the Secretary that such organization will not provide any further support or resources to organizations 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 preceding 5 years. (D) Rescission The Secretary shall rescind 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) (determined 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 periods of suspension under paragraph (3) have ended. A certification described in the matter preceding subclause (I) of clause (II) shall not be treated as valid if the organization making such certification has provided any other such certification during the preceding 5 years. (E) Administrative review by Internal 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 exclusive jurisdiction to review a final determination with respect to an organization’s designation as a terrorist supporting organization under subparagraph (B). In the case of any such determination which was based on classified information (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 subparagraph, a determination with respect to an organization’s designation as a terrorist supporting organization shall not fail to be treated as a final determination merely because such organization fails to utilize the dispute resolution 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 of the enactment of this Act in taxable years ending after such date.

Passed the House of Representatives April 15, 2024. Kevin F. McCumber, Clerk.

tv_txt: IB 118th CONGRESS 2d Session H. R. 6408 IN THE HOUSE OF REPRESENTATIVES AN ACT To amend the Internal Revenue Code of 1986 to terminate the tax-exempt status of terrorist supporting organizations.

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 supporting organization— (i) such organization (and the designation of such organization under subparagraph (B)) shall be treated as described in paragraph (2), and (ii) the period of suspension described in paragraph (3) with respect to such organization shall be treated as beginning on the date that the Secretary designates such organization under subparagraph (B) and ending on the date that the Secretary rescinds such designation under subparagraph (D). (B) Terrorist supporting organization 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 meaning of section 2339B of title 18, United States Code) to an organization described in paragraph (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 subparagraph (B), the Secretary shall mail to the most recent mailing address provided by such organization on the organization’s annual return or notice under section 6033 (or subsequent form indicating a change of address) a written notice which includes— (I) a statement that the Secretary 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 organization 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 material 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 organization under clause (i), the Secretary shall, at the close of the 90-day period beginning on the date that such notice was sent, designate such organization as a terrorist supporting organization under subparagraph (B) if (and only if) such organization has not (during such period)— (I) demonstrated to the satisfaction of the Secretary that such organization did not provide the material support or resources referred to in subparagraph (B), or (II) made reasonable efforts to have such support or resources returned to such organization and certified in writing to the Secretary that such organization will not provide any further support or resources to organizations 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 preceding 5 years. (D) Rescission The Secretary shall rescind 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) (determined 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 periods of suspension under paragraph (3) have ended. A certification described in the matter preceding subclause (I) of clause (II) shall not be treated as valid if the organization making such certification has provided any other such certification during the preceding 5 years. (E) Administrative review by Internal 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 exclusive jurisdiction to review a final determination with respect to an organization’s designation as a terrorist supporting organization under subparagraph (B). In the case of any such determination which was based on classified information (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 subparagraph, a determination with respect to an organization’s designation as a terrorist supporting organization shall not fail to be treated as a final determination merely because such organization fails to utilize the dispute resolution 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 of the enactment of this Act in taxable years ending after such date.

Passed the House of Representatives April 15, 2024. Cheryl L. Johnson, Clerk.

tv_txt: IB Union Calendar No. 270 118th CONGRESS 1st Session H. R. 6408 [Report No. 118–331] 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 December 19, 2023 Additional sponsors: Ms. Tenney , Mr. Ferguson , Mr. Torres of New York , Mr. Kelly of Pennsylvania , Mr. Diaz-Balart , and Mr. Gottheimer December 19, 2023 Reported with an amendment, committed to the Committee of the Whole House on the State of the Union, and ordered to be printed Strike out all after the enacting clause and insert the part printed in italic For text of introduced bill, see copy of bill as introduced on November 14, 2023 A BILL To amend the Internal Revenue Code of 1986 to terminate the tax-exempt status of terrorist supporting organizations.

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 supporting organization— (i) such organization (and the designation of such organization under subparagraph (B)) shall be treated as described in paragraph (2), and (ii) the period of suspension described in paragraph (3) with respect to such organization shall be treated as beginning on the date that the Secretary designates such organization under subparagraph (B) and ending on the date that the Secretary rescinds such designation under subparagraph (D). (B) Terrorist supporting organization 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 meaning of section 2339B of title 18, United States Code) to an organization described in paragraph (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 subparagraph (B), the Secretary shall mail to the most recent mailing address provided by such organization on the organization’s annual return or notice under section 6033 (or subsequent form indicating a change of address) a written notice which includes— (I) a statement that the Secretary 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 organization 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 material 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 organization under clause (i), the Secretary shall, at the close of the 90-day period beginning on the date that such notice was sent, designate such organization as a terrorist supporting organization under subparagraph (B) if (and only if) such organization has not (during such period)— (I) demonstrated to the satisfaction of the Secretary that such organization did not provide the material support or resources referred to in subparagraph (B), or (II) made reasonable efforts to have such support or resources returned to such organization and certified in writing to the Secretary that such organization will not provide any further support or resources to organizations 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 preceding 5 years. (D) Rescission The Secretary shall rescind 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) (determined 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 periods of suspension under paragraph (3) have ended. A certification described in the matter preceding subclause (I) of clause (II) shall not be treated as valid if the organization making such certification has provided any other such certification during the preceding 5 years. (E) Administrative review by Internal 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 exclusive jurisdiction to review a final determination with respect to an organization’s designation as a terrorist supporting organization under subparagraph (B). In the case of any such determination which was based on classified information (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 subparagraph, a determination with respect to an organization’s designation as a terrorist supporting organization shall not fail to be treated as a final determination merely because such organization fails to utilize the dispute resolution 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 of the enactment of this Act in taxable years ending after such date.

December 19, 2023 Reported with an amendment, committed to the Committee of the Whole House on the State of the Union, and ordered to be printed

tv_txt: I 118th CONGRESS 1st Session H. R. 6408 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. 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 supporting organization— (i) such organization (and the designation of such organization under subparagraph (B)) shall be treated as described in paragraph (2), and (ii) the period of suspension described in paragraph (3) with respect to such organization shall be treated as beginning on the date that the Secretary designates such organization under subparagraph (B) and ending on the date that the Secretary rescinds such designation under subparagraph (D). (B) Terrorist supporting organization 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 meaning of section 2339B of title 18, United States Code) to an organization described in paragraph (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 subparagraph (B), the Secretary shall mail to the most recent mailing address provided by such organization on the organization’s annual return under section 6033 (or subsequent form indicating a change of address) a written notice which includes— (I) a statement that the Secretary 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 organization 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 material support or resources. (ii) Opportunity to cure In the case of any notice provided to an organization under clause (i), the Secretary shall, at the close of the 90-day period beginning on the date that such notice was sent, designate such organization as a terrorist organization under subparagraph (B) if (and only if) such organization has not (during such period)— (I) demonstrated to the satisfaction of the Secretary that such organization did not provide the material support or resources referred to in subparagraph (B), or (II) made reasonable efforts to have such support or resources returned to such organization and certified in writing to the Secretary that such organization will not provide any further support or resources to organizations 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 preceding 5 years. (D) Rescission The Secretary shall rescind 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) (determined 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 periods of suspension under paragraph (3) have ended. A certification described in the matter preceding subclause (I) of clause (II) shall not be treated as valid if the organization making such certification has provided any other such certification 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.