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

This bill, introduced in the Senate, would amend the Internal Revenue Code to terminate the tax-exempt status of organizations determined to support terrorism. Currently, tax-exempt organizations are not required to pay federal income taxes, and donations to them may be tax-deductible for donors. If enacted, this bill would remove that tax-exempt status from organizations that provide support to terrorist groups or causes.

The practical effect would be that such organizations would be subject to federal income taxes on their revenues and donors could no longer claim tax deductions for contributions to them. This could reduce funding for organizations identified as supporting terrorism and increase federal tax revenue from those entities. The bill is currently in the committee stage and has not yet been voted on by the full Senate.