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

This bill (S 3554) would amend tax law to strip tax-exempt status from organizations providing material support to terrorist groups. It defines "terrorist supporting organizations" as those that gave more than minimal material support (like funds or resources) to designated terrorist groups within the past three years. The Treasury Secretary must notify such organizations, giving them 90 days to prove they didn’t provide support, return funds, or challenge the designation in court before tax-exempt status is revoked. Organizations can later seek reinstatement if the Secretary later determines the designation was incorrect. The law establishes specific procedures for notice, dispute resolution through the IRS Appeals Office, and court review for challenges.