Chairman Smith Calls On IRS to Crack Down on Tax-Exempt Groups Tied to Terrorism & Political Violence

WASHINGTON, D.C. - Today, Ways and Means Committee Chairman Jason Smith (MO-08) is calling on the Internal Revenue Service (IRS) to revoke the tax-exempt status of multiple organizations previously referred by the Ways and Means Committee for failing to operate within their stated tax-exempt purpose. The letter coincides with the anniversary of the October 7^th terrorist attack on Israel and targets organizations with links to designated foreign terrorist groups, as well as organizations linked to violence and unrest in the United States.

Chairman Smith previously demanded then-IRS Commissioner Daniel Werfel revoke the tax-exempt status of eight organizations with ties to Hamas and terror-linked organizations, as well as entities fueling antisemitic protests on U.S. college campuses and violence in the U.S.

In the letter to the IRS, Chairman Smith wrote: "We write to request that the Internal Revenue Service ("IRS") prioritize examinations into the tax-exempt status of tax-exempt organizations previously referred to the IRS for revocation during the 118^th Congress. In light of the anniversary of the October 2023 violent attack on Israel, along with recent acts of political violence and the continued disruptive activities of previously identified organizations that have been sowing chaos in the United States and have links to designated foreign terrorist groups, it is imperative that action is taken to ensure tax-exempt groups are operating within their tax-exempt purpose."

The letter continues, "From the international funding sources and activities of tax-exempt entities in the U.S., and the role of certain organizations in fostering antisemitism on college campuses, the Committee has remained steadfast in ensuring that all tax-exempt organizations are abiding by their exempt status. In September 2024, the Committee on Ways and Means ("the Committee") sent seven letters to the IRS requesting that the IRS investigate and revoke the tax-exempt status of the referenced organizations, while also highlighting the tax-exempt organizations' ties to Foreign Terrorist Organizations, support of illegal activity in America, and failure to operate for stated exempt purposes. Some of the organizations, such as Americans for Justice in Palestine Educational Foundation, American Muslims for Palestine, and Islamic Relief USA, are suspected of having terrorist ties to groups like Hamas, using those ties to actively support and funnel resources in support of terrorism. Other groups like the Alliance for Global Justice, WESPAC Foundation, and Tides Foundation instead fiscally sponsor projects that disrupt college campuses, incite violence and intimidation, and illegal riot across the United States-prominent projects include Students for Justice in Palestine and Samidoun. Together, this evidence strongly supported referring the groups to the IRS for revocation of their tax-exempt status."

The organizations for which Chairman Smith is renewing referral for revocation of tax-exempt status include: Americans for Justice in Palestine Educational Foundation, American Muslims for Palestine, Islamic Relief USA, Alliance for Global Justice, WESPAC Foundation, Tides Foundation, Peoples Media Project (also known as The Palestine Chronicle), and The People's Forum.

READ: Ways and Means Chairman Smith Demands IRS Revoke Tax-Exempt Status of Organizations Fueling Chaos, Illegal Conduct, and Antisemitic Activity in U.S., Including those with Possible Ties to Terrorist Networks

READ: Chairman Smith Exposes U.S. Nonprofit as Likely CCP-Funded Propaganda Arm Operating Under Tax-Exempt Status