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

Summary

Allows the Treasury Secretary to designate certain organizations as “terrorist supporting organizations” and treat them like organizations that can have their federal tax-exempt status suspended or terminated if they provided material support to designated terrorist groups in the prior three years. The bill sets notice and a 90-day cure period for organizations, creates administrative appeal and district court review paths (including procedures for handling classified information), and requires Treasury policies for classified evidence; it applies to designations made after enactment for taxable years ending after enactment.

• Grants the Treasury Secretary authority to label organizations as "terrorist supporting" for tax purposes.
• Designation can lead to suspension or termination of federal tax-exempt status when an organization provided material support to designated recipient groups within the prior 3 years.
• Material support defined by federal criminal law (18 U.S.C. §2339B), but excludes State- and AG-approved support and OFAC-approved humanitarian aid.
• Requires written notice and gives organizations a 90-day cure period to rebut, remediate, or challenge withheld disclosure in court.
• Creates administrative appeal through the IRS Independent Office of Appeals and exclusive district-court review for certain determinations, including procedures for classified evidence.
• Mandates Treasury policies for handling classified information used in designations and reviews.
• Directs rescission procedures when a designation is erroneous, when notice/cure conditions are met, or when suspension periods end.
• Applies to designations made after enactment for taxable years ending after enactment.