[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6408 Engrossed in House (EH)]
<DOC>
118th CONGRESS
2d Session
H. R. 6408
_______________________________________________________________________
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 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--
``(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.
Attest:
Clerk.
118th CONGRESS
2d Session
H. R. 6408
_______________________________________________________________________
AN ACT
To amend the Internal Revenue Code of 1986 to terminate the tax-exempt
status of terrorist supporting organizations.