This bill gives the federal government a new tool to strip tax-exempt status from organizations that support terrorist groups. Here's how it works: if the IRS Secretary determines that an organization has given money, resources, or other material support to a designated terrorist organization over the past three years, they can revoke that organization's tax-exempt status.

Before taking this action, the government must send the organization a written notice explaining what support they allegedly provided and giving them 90 days to respond. During this period, the organization can try to prove they didn't provide the support, return any support they did give and promise not to do it again, or challenge the government's evidence in court if the government is withholding details for national security reasons. If the organization doesn't satisfy the government within 90 days, their tax-exempt status gets suspended.

The bill includes some important protections: humanitarian aid and support that was officially approved by the State Department don't count as "material support." Organizations can appeal the government's decision through the IRS appeals process or challenge it in federal court. The government also has to follow strict rules about handling classified information when making these decisions. An organization can get their tax-exempt status back if the government made a mistake, if they can prove they never received the notice, or once the suspension period ends for all the terrorist organizations they allegedly supported.