A bill to amend the Internal Revenue Code of 1986 to terminate the tax-exempt status of terrorist supporting organizations.
Senate Committee Reviews Bill to Strip Tax-Exempt Status From Terror-Linked Nonprofits
Stalled
No legislative action in over 90 days.
Legislative Progress
Key Points
- Congress would let the Treasury Department strip tax-exempt status from nonprofits it says gave more than minimal “material support” to a terrorist group.
- Treasury would have to send a written warning first, then give the organization 90 days to prove it didn’t help, or show it tried to get the support back and promise not to do it again.
- Some support would be excluded if it was approved by the State Department and Justice Department, or if it was humanitarian aid approved through Treasury’s sanctions office.
- If designated, the nonprofit’s tax benefits would be suspended starting on the designation date and could return only if Treasury later rescinds the designation.
- The bill sets up ways to challenge the decision, including review through an IRS appeals office and lawsuits in federal district court; classified evidence could be shown to a judge privately.
Impact Analysis
Personal Impact
How this policy affects specific groups of people
Milestones
Read twice and referred to the Committee on Finance.
Sent to a congressional committee for expert review. The committee decides whether this bill moves forward.
Introduced in Senate
The bill was officially filed and given a number. It now enters the legislative queue.
Votes
No votes have been recorded for this legislation yet.
Related News
3 articles
What to know about the House bill that could punish nonprofits over alleged 'terrorist' ties
A scholar explains the outcry over H.R. 9495, noting it could become a 'blunt sword' used against political opponents. The bill lacks a clear definition of 'material support,' potentially leaving room for partisan interpretation by the Treasury Department.
House Democratic support for bill on terror-supporting nonprofits plummets
Democratic support for H.R. 9495 dropped significantly between votes as members raised concerns about due process. The bill aims to target U.S.-based nonprofits with traceable ties to foreign terrorist organizations while also helping American hostages.
Sweeping nonprofit House bill passes, healthcare groups turn attention to Senate
Healthcare nonprofits like Planned Parenthood are on high alert after the House passed H.R. 9495. Critics argue the bill could be weaponized to strip tax-exempt status from reproductive health and other advocacy groups by labeling them 'terrorist supporting.'
Source Information
Document Type
Congressional Bill
Official Title
A bill to amend the Internal Revenue Code of 1986 to terminate the tax-exempt status of terrorist supporting organizations.
Data Sources
Sponsor
Cosponsors
(1)Analysis generated by AI. Always verify with official sources.