H.R. 6800

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6800 Introduced in House (IH)]

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119th CONGRESS
1st Session
H. R. 6800

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

_______________________________________________________________________

IN THE HOUSE OF REPRESENTATIVES

December 17, 2025

Mr. Kustoff 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--
``(i) In general.--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 to an organization described in 
paragraph (2) (determined after the application 
of this paragraph to such organization) in 
excess of a de minimis amount.
``(ii) Material support or resources.--The 
term `material support or resources' has the 
meaning given such term in subsection (g)(4) of 
section 2339B of title 18, United States Code, 
except that such term shall not include--
``(I) support or resources that 
were approved by the Secretary of State 
with the concurrence of the Attorney 
General for purposes of subsection (j) 
of such section, or
``(II) humanitarian aid provided 
with the approval of the Office of 
Foreign Assets Control.
``(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),
``(III) a description of such 
material support or resources except to 
the extent that the Secretary 
determines that disclosure of such 
description would be inconsistent with 
national security or law enforcement 
interests, and
``(IV) if the Secretary makes the 
determination described in subclause 
(III), a statement that the Secretary 
has made such determination and that 
all or part of the description of such 
material support or resources is not 
included in such notice by reason of 
such determination.
``(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),
``(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), or
``(III) if such notice included a 
statement described in clause (i)(IV), 
filed a complaint with a United States 
district court of competent 
jurisdiction alleging that Secretary's 
determination under clause (i)(III) is 
erroneous.
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.
``(iii) Application of opportunity to cure 
following complaint regarding determination to 
withhold description of material support or 
resources.--In the case of a final judgment of 
a court of competent jurisdiction that the 
Secretary's determination under clause (i)(III) 
was not erroneous, clause (ii) shall be applied 
without regard to subclause (III) thereof and 
as though the notice referred to in such clause 
was sent on the first date that all rights of 
appeal with respect to such final judgement 
have concluded.
``(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 any determination of the Secretary under 
subparagraph (C)(i)(III) and any 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).
``(G) Classified information.--The Secretary shall 
establish policies and procedures for purposes of this 
paragraph that ensure that employees of the Department 
of the Treasury comply with all laws regarding the 
handling and review of classified information (as 
defined in section 1(a) of the Classified Information 
Procedures Act).''.
(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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