S. 497 — FENCE Act

This bill denies federal tax-exempt status under Internal Revenue Code (IRC) Section 501(c)(3) to an organization that engages in a pattern or practice of providing financial assistance, benefits, services, or other material support to individuals that such organization knows or reasonably should know are unlawfully present in the United States. However, the bill does not require an organization to verify an individual’s citizenship or immigration status, or act in violation of religious beliefs. As background, an organization may be exempt from federal income tax under IRC Section 501(c)(3) if it is organized and operated exclusively (1) for religious, charitable, scientific, literary, or...