EXCLUSIVE — Rep. Jason Smith (R-MO), chairman of the congressional committee that oversees the IRS, is demanding the agency strip a progressive nonprofit organization of its tax-exempt status after the Treasury Department determined in October that one of its subsidiaries is a terrorist front group.

The Popular Front for the Liberation of Palestine, a U.S.-designated terrorist organization, uses Samidoun, which is housed within the Alliance for Global Justice through a fiscal sponsorship agreement, as a vehicle to fundraise in North America and Europe, according to the Treasury Department. Smith, as chairman of the House Ways and Means Committee, sent a letter to the IRS on Wednesday morning arguing that this kind of proximity to foreign terrorists should disqualify the AFGJ from receiving tax-exemption benefits in the United States.