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US Treasury revokes tax-exempt status of three Muslim charities
Washington, Nov 15: The US Treasury Department has announced that it has revoked the tax-exempt status of three Muslim charities that the us government has accused of diverting contributions to help bankroll terrorist activities.
Washington, Nov 15: The US Treasury Department has announced that it has revoked the tax-exempt status of three Muslim charities that the us government has accused of diverting contributions to help bankroll terrorist activities.
Treasury and the Internal Revenue Service said yesterday the action affects Benevolence International Foundation of Palos Hills, Illinois, Global Relief Foundation of Bridgeview, Illinois, and Holy Land Foundation for Relief and Development of Richardson, Texas.
The three charities have been designated previously by the government as suspected terrorist financiers under an executive order of President George W Bush, the department said.
Once the government made that designation, it meant that their financial assets were frozen and people were forbidden from making donations to them, an effort to shut the groups down.
The three charities' tax-exempt status was suspended November 11, the same day a new law took effect that included a provision giving the department the power to take such action. The provision allows the government to suspend the tax-exempt status of organisations designated as having supported terrorism.
When an organization loses its tax-exempt status, people cannot deduct from their federal income taxes any contributions made to the group and the organisation must pay federal income tax. Bureau Report
The three charities have been designated previously by the government as suspected terrorist financiers under an executive order of President George W Bush, the department said.
Once the government made that designation, it meant that their financial assets were frozen and people were forbidden from making donations to them, an effort to shut the groups down.
The three charities' tax-exempt status was suspended November 11, the same day a new law took effect that included a provision giving the department the power to take such action. The provision allows the government to suspend the tax-exempt status of organisations designated as having supported terrorism.
When an organization loses its tax-exempt status, people cannot deduct from their federal income taxes any contributions made to the group and the organisation must pay federal income tax. Bureau Report