Congresswoman Gwen Moore Statement on H.R. 9495

Congresswoman Gwen Moore Statement on H.R. 9495

“No one detained or held hostage abroad should come home to face a tax penalty or fine, potentially amounting to thousands of dollars, because they are unable to make tax payments during such a terrible ordeal.  Or worry about tax deadlines.  That’s the last thing these Americans should have to worry about.

While the IRS has the power to provide tax relief on a case-by-case basis, this legislation would shield taxpayers by postponing tax deadlines for any U.S. national held hostage or unlawfully or wrongfully detained abroad. 

I am pleased to support that provision.

This legislation also includes a provision that would empower the Treasury Department to revoke the tax-exempt status of any nonprofit organization that the Treasury designates as a ‘terrorist supporting organization’ if they are found to provide material support or resources to a terrorist organization.

I am curious as to why this measure has been attached to this noncontroversial bill since it already passed the House as a stand-alone bill (H.R. 6408) several months ago.

This proposal builds on existing restrictions preventing designated terrorist organizations from benefiting from tax-exempt status. I am aware that the due process procedures and review for terrorist supporting organizations would be significantly different under this proposal than they are for existing processes to designate terrorist organizations.  This has raised concerns among some that the proposal provides insufficient due process safeguards against erroneous designations and would negatively impact the work of nonprofit groups working to provide humanitarian and other relief in some of the most dangerous places in the world.

 That said, this proposal includes an opportunity for organizations to rebut a designation and affected organizations may seek judicial review of any final designation.  And I support efforts to strengthen due process and other provisions in this bill moving forward to ensure that this proposal could not be weaponized by this or any other Administration to target nonprofit groups simply because they disagree with them.

Terrorist groups and their supporters should not benefit from tax-exempt status, which only legitimizes their activities and helps support terrorist financing. If done right, this may add a valuable tool for the Treasury Department’s fight against national security threats.”

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