,,ii  #aai? ,,congress  #a/ ,session    
,s4 #ceed  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,decemb] #ag1 #bjbe,mr4
 ,cornyn 7= himself & ,mr4 ,%eehy7      
introduc$ ! foll[+ bill2 :i* 0 read     
twice & ref]r$ to ! ,committee on       
,f9ance  ,a ,,bill  ,to am5d ! ,int]nal 
,rev5ue ,code ( #aihf to t]m9ate !      
tax-exempt /atus ( t]rori/ support+     
organizations4  #a4 ,t]m9ation (        
tax-exempt /atus ( t]rori/ support+     
organizations  7a7 ,9 g5]al ,section    
#eja7p7 ( ! ,int]nal ,rev5ue ,code (    
#aihf is am5d$ by add+ at ! end ! foll[+
 new p>agraph3  7#h7 ,application to    
t]rori/ support+ organizations  7,a7 ,9 
g5]al ,= purposes ( ?is subsection1 9 ! 
case ( any t]rori/ support+             
organization-- 7i7 su* organization 7& !
 designation ( su* organization "u      
subp>agraph 7,b77 %all be treat$ z      
describ$ 9 p>agraph 7#b71 &  7ii7 !     
p]iod ( susp5sion describ$ 9 p>agraph   
7#c7 ) respect to su* organization %all 
be treat$ z beg9n+ on ! date t !        

,secret>y designates su* organization "u
 subp>agraph 7,b7 & end+ on ! date t !  
,secret>y resc9ds su* designation "u    
subp>agraph 7,d74  7,b7 ,t]rori/        
support+ organization ,= purposes ( ?is 
p>agraph-- 7i7 ,9 g5]al ,! t]m t]rori/  
support+ organization means any         
organization :i* is designat$ by !      
,secret>y z hav+ provid$1 dur+ ! #c-ye> 
p]iod end+ on ! date ( su* designation1 
mat]ial support or res\rces to an       
organization describ$ 9 p>agraph 7#b7   
7det]m9$ aft] ! application ( ?is       
p>agraph to su* organization7 9 excess (
 a de m9imis am\nt4  7ii7 ,mat]ial      
support or res\rces ,! t]m mat]ial      
support or res\rces has ! mean+ giv5 su*
 t]m 9 subsection 7g77#d7 ( section     
#bcci;,b ( title #ah1 ,unit$ ,/ates     
,code1 except t su* t]m %all n include--
 7,i7 support or res\rces t 7 approv$ by
 ! ,secret>y ( ,/ate ) ! concurr5ce ( ! 
,attorney ,g5]al = purposes ( subsection
 7j7 ( su* section1 or  7,,ii7          
humanit>ian aid provid$ ) ! approval ( !

 ,(fice ( ,=eign ,assets ,control4  7,c7
 ,designation proc$ure  7i7 ,notice     
requirem5t ,prior to designat+ any      
organization z a t]rori/ support+       
organization "u subp>agraph 7,b71 !     
,secret>y %all mail to ! mo/ rec5t mail+
 address provid$ by su* organization on 
! organization's annual return or notice
 "u section #fjcc 7or subsequ5t =m      
indicat+ a *ange ( address7 a writt5    
notice :i* includes-- 7,i7 a /atem5t t !
 ,secret>y w designate su* organization 
z a t]rori/ support+ organization unless
 ! organization satisfies ! requirem5ts 
( subclause 7,i7 or 7,,ii7 ( clause     
7ii71  7,,ii7 ! "n ( ! organization or  
organizations ) respect to :i* !        
,secret>y has det]m9$ su* organization  
provid$ mat]ial support or s\rces z     
describ$ 9 subp>agraph 7,b71  7,,iii7 a 
description ( su* mat]ial support or    
res\rces except to ! ext5t t ! ,secret>y
 det]m9es t disclosure ( su* description
 w\ld be inconsi/5t ) national security 
or law en=cem5t int]e/s1 &  7,,iv7 if ! 

,secret>y makes ! det]m9ation describ$ 9
 subclause 7,,iii71 a /atem5t t !       
,secret>y has made su* det]m9ation & t  
all or "p ( ! description ( su* mat]ial 
support or res\rces is n includ$ 9 su*  
notice by reason ( su* det]m9ation4     
7ii7 ,opportunity to cure ,9 ! case (   
any notice provid$ to an organization "u
 clause 7i71 ! ,secret>y %all1 at !     
close ( ! #ij-;day p]iod beg9n+ on !    
date t su* notice 0 s5t1 designate su*  
organization z a t]rori/ support+       
organization "u subp>agraph 7,b7 if 7&  
only if7 su* organization has n 7dur+   
su* p]iod7-- 7,i7 demon/rat$ to !       
satisfaction ( ! ,secret>y t su*        
organization did n provide ! mat]ial    
support or res\rces ref]r$ to 9         
subp>agraph 7,b71  7,,ii7 made          
reasonable ef=ts to h su* support or    
res\rces return$ to su* organization &  
c]tifi$ 9 writ+ to ! ,secret>y t su*    
organization w n provide any fur!r      
support or res\rces to organizations    
describ$ 9 p>agraph 7#b71 or  7,,iii7 if

 su* notice includ$ a /atem5t describ$ 9
 clause 7i77,,iv71 fil$ a compla9t ) a  
,unit$ ,/ates di/rict c\rt ( compet5t   
jurisdiction alleg+ t ,secret>y's       
det]m9ation "u clause 7i77,,iii7 is     
errone\s4  ,a c]tification "u subclause 
7,,ii7 %all n be treat$ z valid if !    
organization mak+ su* c]tification has  
provid$ any o!r su* c]tification dur+ ! 
prec$+ #e ye>s4  7iii7 ,application (   
opportunity to cure foll[+ compla9t     
reg>d+ det]m9ation to )hold description 
( mat]ial support or res\rces ,9 ! case 
( a f9al judgm5t ( a c\rt ( compet5t    
jurisdiction t ! ,secret>y's det]m9ation
 "u clause 7i77,,iii7 0 n errone\s1     
clause 7ii7 %all be appli$ )\t reg>d to 
subclause 7,,iii7 !re( & z ?\gh ! notice
 ref]r$ to 9 su* clause 0 s5t on ! fir/ 
date t all rights ( appeal ) respect to 
su* f9al judgem5t h conclud$4  7,d7     
,rescission ,! ,secret>y %all resc9d a  
designation "u subp>agraph 7,b7 if 7&   
only if7-- 7i7 ! ,secret>y det]m9es t   
su* designation 0 errone\s1  7ii7 aft] !

 ,secret>y receives a writt5            
c]tification f an organization t su*    
organization did n receive ! notice     
describ$ 9 subp>agraph 7,c77i7-- 7,i7 ! 
,secret>y det]m9es t x is reasonable to 
believe t su* organization did n receive
 su* notice1 &  7,,ii7 su* organization 
satisfies ! requirem5ts ( subclause 7,i7
 or 7,,ii7 ( subp>agraph 7,c77ii7       
7det]m9$ aft] tak+ into acc\nt ! la/    
s5t5ce !re(71 or  7iii7 ! ,secret>y     
det]m9es1 ) respect to all organizations
 to :i* ! mat]ial support or res\rces   
ref]r$ to 9 subp>agraph 7,b7 7 provid$1 
! p]iods ( susp5sion "u p>agraph 7#c7 h 
end$4  ,a c]tification describ$ 9 !     
matt] prec$+ subclause 7,i7 ( clause    
7ii7 %all n be treat$ z valid if !      
organization mak+ su* c]tification has  
provid$ any o!r su* c]tification dur+ ! 
prec$+ #e ye>s4  7,e7 ,adm9i/rative     
review by ,int]nal ,rev5ue ,s]vice      
,indep5d5t ,(fice ( ,appeals ,9 ! case (
 ! designation ( an organization by !   
,secret>y z a t]rori/ support+          

organization "u subp>agraph 7,b71 a     
dispute reg>d+ su* designation %all be  
subject to resolution by ! ,int]nal     
,rev5ue ,s]vice ,indep5d5t ,(fice (     
,appeals "u section #ghjc7;e7 9 ! same  
mann] z if su* designation 7 made by !  
,int]nal ,rev5ue ,s]vice & p>agraph 7#e7
 ( ?is subsection did n apply4  7,f7    
,jurisdiction ( ,unit$ ,/ates c\rts     
,not)/&+ p>agraph 7#e71 ! ,unit$ ,/ates 
di/rict c\rts %all h exclusive          
jurisdiction to review any det]m9ation (
 ! ,secret>y "u subp>agraph             
7,c77i77,,iii7 & any f9al det]m9ation ) 
respect to an organization's designation
 z a t]rori/ support+ organization "u   
subp>agraph 7,b74 ,9 ! case ( any su*   
det]m9ation :i* 0 bas$ on classifi$     
in=mation 7z def9$ 9 section #a7;a7 ( ! 
,classifi$ ,in=mation ,proc$ures ,act71 
su* in=mation may be submitt$ to !      
review+ c\rt ex p>te & 9 cam]a4 ,=      
purposes ( ?is subp>agraph1 a           
det]m9ation ) respect to an             
organization's designation z a t]rori/  

support+ organization %all n fail to be 
treat$ z a f9al det]m9ation m]ely       
because su* organization fails to       
utilize ! dispute resolution process ( !
 ,int]nal ,rev5ue ,s]vice ,indep5d5t    
,(fice ( ,appeals provid$ "u subp>agraph
 7,e74  7,g7 ,classifi$ in=mation ,!    
,secret>y %all e/abli% policies &       
proc$ures = purposes ( ?is p>agraph t   
ensure t employees ( ! ,dep>tm5t ( !    
,treasury comply ) all laws reg>d+ !    
h&l+ & review ( classifi$ in=mation 7z  
def9$ 9 section #a7;a7 ( ! ,classifi$   
,in=mation ,proc$ures ,act74  4  7b7    
,effective date ,! am5dm5t made by ?is  
section %all apply to designations made 
aft] ! date ( ! enactm5t ( ?is ,act 9   
taxable ye>s end+ aft] su* date4