Ways and Means Takes Up 501(p) Terrorist Supporting Organizations

"Blessed are the Peacemakers . . . "

I told you just before Thanksgiving about a bipartisan effort to amend IRC 501(p).  I think it signals a greater willingness or desire to summarily revoke tax exemption for domestic charities accused of providing material support to terrorists.  There's no due process in the current regulations authorizing revocation not even for domestic organizations accused of supporting terrorists.  This bill injects a very minimal amount, and a proposed amendment to be considered today provides for an internal IRS appeal process.  So far, more than a few domestic charities have been accused of supporting terrorists, by the way.  Not just apparently obvious (to some) fifth columns like the National Students for Justice in Palestine, which is still effectively tax exempt via a fiscal sponsor.  Harvard and Penn, too.  We better tread lightly here because we are navigating a mine field.  Ways and Means will do a mark-up today of the proposal.  Here are the background materials:  

H.R. 6408, “To amend the Internal Revenue Code of 1986 to terminate the tax-exempt status of terrorist supporting organizations”

• H.R. 6408, “To amend the Internal Revenue Code of 1986 to terminate the tax-exempt status of terrorist supporting organizations”
• JCT Description of H.R. 6408, “To amend the Internal Revenue Code of 1986 to terminate the tax-exempt status of terrorist supporting organizations”
• Amendment in the Nature of a Substitute to H.R. 6408, “To amend the Internal Revenue Code of 1986 to terminate the tax-exempt status of terrorist supporting organizations”
• JCT Description of the Amendment in the Nature of a Substitute to H.R. 6408, “To amend the Internal Revenue Code of 1986 to terminate the tax-exempt status of terrorist supporting organizations” (Green Sheet)

darryll k. jones