The U.S. House of Representatives passed legislation that would give the Treasury Dept. authority to strip the tax-exempt status of nonprofit organizations it claims support terrorism. According to the Congressional Research Service, the Stop Terror-Financing and Tax Penalties on American Hostages Act would create a new category of “terrorist supporting organizations.” Any organization the Treasury Secretary designates as having provided material support to a terrorist organization in the past three years may fall under the new category. Nonprofits that could be affected include unions, private foundations and membership organizations. It’s unclear if the bill will pass in the Senate.
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