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September 30, 2004 | Read Time: 1 minute

As part of a Congressional investigation into alleged ties between charities and terrorist organizations, the Senate Finance Committee plans to hold a hearing — possibly as early as next week — on terrorism financing. Earlier this year, the Senate Finance Committee, which oversees nonprofit organizations, held a hearing to address the role of the U.S. Department of the Treasury in fighting terror financing. The Senate committee also asked the Internal Revenue Service earlier this year to turn over confidential records, including names of contributors, of 24 Muslim charitable organizations and foundations.
The Internal Revenue Service has filed a $15-million claim in U.S. Bankruptcy Court for the District of Maryland against AmeriDebt, one of the largest nonprofit credit-counseling organizations. AmeriDebt is one of 50 such organizations the IRS has been investigating as part of a crackdown. The IRS, which earlier took steps to revoke AmeriDebt’s charity status, filed the claim so it could recover taxes the group will owe if it loses its tax exemption. The IRS pulls tax exemptions when it decides that a group fails to perform a charitable activity. AmeriDebt, which filed for bankruptcy protection in June, says it has done nothing wrong.