Union Calendar No. 270
118th CONGRESS 1st Session |
[Report No. 118–331]
To amend the Internal Revenue Code of 1986 to terminate the tax-exempt status of terrorist supporting organizations.
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]
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 Representatives 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.—
“(A) IN GENERAL.—For purposes of this subsection, in the case of any terrorist supporting organization—
“(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) 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)—
“(ii) after the Secretary receives a written certification from an organization that such organization did not receive the notice described in subparagraph (C)(i)—
“(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).”.
Union Calendar No. 270 | |||||
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[Report No. 118–331] | |||||
A BILL | |||||
To amend the Internal Revenue Code of 1986 to terminate the tax-exempt status of terrorist supporting organizations. | |||||
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 |