FROM THE OFFICE OF PUBLIC AFFAIRS

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Today the Treasury Department and the Internal Revenue Service announced the suspension of the tax exempt status of three organizations: Benevolence International Foundation, Inc., Global Relief Foundation, Inc., and Holy Land Foundation for Relief and Development. The tax exempt status of these organizations is being suspended because they have been designated as supporting or engaging in terrorist activity or supporting terrorism. Contributions made to an organization during the period that the organization’s tax-exempt status is suspended are not deductible for federal tax purposes.

“We will continue to use all available means to fight the financial war on terrorism,” stated Treasury Assistant Secretary for Tax Policy Pam Olson. “Today’s announcement is another example of that effort.  Organizations found by the United States government to support terrorism should not be exempt from federal income tax and contributions to those organizations should not be deductible for federal tax purposes.”

"The IRS supports the war on terrorism," said IRS Commissioner Mark W. Everson. "The agency's efforts include scrutinizing tax-exempt organizations that may support terrorism.  In addition, our criminal investigators follow the flow of terrorist-related financing to countries around the world, including the Middle East. In Iraq, our special agents help trace and recover assets from Saddam Hussein's regime."

Prior to the effective date of suspension of exemption under section 501(p), these three organizations were designated under Executive Order 13224, entitled "Blocking Property and Prohibiting Transactions With Persons Who Commit, Threaten To Commit, or Support Terrorism."  Contributions made to these organizations in violation of the Executive Order prior to this suspension are not tax deductible under the Internal Revenue Code.

Related Documents:

• The text of Announcement 2003-74