WASHINGTON, D.C. –The Internal Revenue Service (IRS) must immediately revoke the tax-exempt status of the Alliance for Global Justice (the Alliance) for its financial support of the terrorist-linked Samidoun organization – which was recently designated a “sham charity” by the U.S. Department of the Treasury – Ways and Means Committee Chairman Jason Smith (MO-08) demanded in a letter today to the IRS. Despite this Treasury designation and clear evidence of financial support for Samidoun, the Alliance no longer deserves its tax-exempt privileges, but the IRS has failed to act on Chairman Smith’s previous demands to end its generous tax benefits.

Chairman Smith wrote, “This case is not complicated, which makes the failure to revoke the Alliance’s tax-exempt status both concerning and confusing. As you know, if a nonprofit organization conducts substantial activities that do not further its exempt purposes, such activity may result in the loss of the organization’s tax-exempt status. Additionally, the IRS has found that conducting illegal activity is inconsistent with tax exemption, and the agency has stated that ‘planning and sponsoring such activities are incompatible with charity and social welfare.’ Furthermore, and of most importance in this case, under Section 501(p) of the IRC, organizations designated as terrorist organizations cannot maintain tax-exempt status.”

“Given Samidoun’s designation by the Treasury as a terrorist organization, coupled with the fact that the Alliance fiscally sponsors and provides support for Samidoun, the IRS must revoke the Alliance’s tax-exempt status immediately,” the letter continues.

You can read the full text of the letter here.

The letter to IRS Commissioner Daniel Werfel comes amid an ongoing Ways and Means Committee investigation into the nonprofit sector. Earlier this year, Chairman Smith demanded the IRS revoke the tax-exempt status of multiple organizations, including the Alliance for Global Justice, after exposing the groups’ ties to Foreign Terrorist Organizations, support of illegal activity in America, and operation outside of stated exempt purposes.

READ: Treasury Sanctions Sham Charity for Terrorist Ties Following Ways and Means Investigation

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