[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6408 Introduced in House (IH)]
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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 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 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.
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