S. 497: Fixing Exemptions for Networks Choosing to Enable Illegal Migration Act

This bill, titled the "Fixing Exemptions for Networks Choosing to Enable Illegal Migration Act" (or the "FENCE Act"), proposes modifications to the Internal Revenue Code regarding the tax-exempt status of certain organizations.

Key Provisions

The bill specifically targets organizations that provide support to individuals who are unlawfully present in the United States. The main points include:

• The amendment clarifies that organizations that engage in a "pattern or practice" of providing financial assistance, benefits, services, or material support to individuals known to be unlawfully present in the country will not qualify for 501(c)(3) tax-exempt status.
• This change aims to modify the current exemptions that allow such organizations to maintain their tax-exempt status while engaging in the aforementioned activities.
• The bill further specifies that proof of citizenship or immigration status verification is not required for religious organizations, allowing them to operate in accordance with their beliefs without losing tax-exempt status.

Implementation Timeline

The amendments proposed in this bill would take effect immediately upon its enactment.

Relevant Companies

None found