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

S 4136 would amend tax law to revoke the tax-exempt status of organizations providing material support to designated terrorist groups. It defines "terrorist supporting organizations" as those giving funds or resources (beyond a minimal amount) to groups listed under terrorism laws within the past three years. The bill requires the IRS to notify such organizations, giving them 90 days to prove they didn’t provide support or commit to stopping future support before tax-exempt status is terminated. Organizations can challenge the designation through IRS Appeals or federal court, with courts having exclusive jurisdiction to review final decisions. This directly affects tax-exempt groups meeting the bill's specific definition of supporting terrorism.