H.R. 6408 would suspend the tax-exempt status of organizations that support terrorism. Under current law, an entity’s tax-exempt status is suspended if it is designated by the Department of State as a terrorist organization. H.R. 6408 would extend that prohibition to include organizations identified as having provided material support or resources to a terrorist or terrorist-supporting organization within the prior three years. The bill would establish procedures for the department to provide notice to those organizations, for organizations to refute the designation, and for designations to be rescinded.
