House Committee Probe Leads to Islamic Organization’s US Subsidiary Cutting Ties With UK Affiliate

A probe conducted by the House Committee on Ways and Means has resulted in a U.S. affiliate of a U.K.-based Islamic organization severing ties with the British entity, the committee said in a March 30 statement.

At issue is UK-based Islamic Relief Worldwide (IRW), which has “suspected ties to terrorism,” the committee said. The U.S. affiliate, nonprofit Islamic Relief USA (IRUSA), stands to lose its tax-exempt status if found to be associated with such an organization.

IRW has been accused of harboring ties with terrorist group Hamas, and its leadership has allegedly displayed anti-Semitic vitriol, the committee chair said in a letter. IRW operates in the United States via its affiliate IRUSA.

IRW’s staff members, including founders, allegedly have ties with the Muslim Brotherhood and other groups that are banned in several nations. The Muslim Brotherhood has been designated a terrorist organization by the United States, according to the letter.

In 2016, the FBI and other U.S. entities filed a criminal case related to IRW, the letter said. The same year, HSBC Bank announced it would end all ties with IRW amid concerns that funding could end up supporting terrorist groups.

In the letter, Rep. Jason Smith (R-Mo.), the committee chairman, asked the IRS to investigate IRUSA.

“Given IRW’s activities and IRUSA’s decisions to continue funding IRW, the IRS should revoke IRUSA’s tax-exempt status,” the letter reads.

In October 2025, Smith broached the matter again with the IRS.

In light of these requests, IRUSA filed a lawsuit as part of its attempts to cut ties with IRW, the committee said in its statement. Severing ties can potentially allow IRUSA to retain its tax-exempt status.

IRUSA provides aid across more than 60 nations, including Yemen, Lebanon, Syria, Gaza, Palestine, Sudan, and Pakistan. It engages in various Muslim causes, such as orphan support.

The organization reported $147 million in revenues, $232 million in total assets, and $4.1 million in total liabilities for 2024, according to ProPublica data.

IRUSA Lawsuit

The lawsuit from IRUSA, filed against IRW on March 23 in the U.S. District Court for the Southern District of New York, said that IRW’s action has created “potential jeopardy” for IRUSA.

The lawsuit alleged that IRW “wrongly and illegally” sought donations from Americans in several U.S. states. This action “piggybacked” on IRUSA’s reputation and has created confusion between the two entities.

IRUSA has historically been an independent partner of IRW. However, in October 2025, IRUSA notified IRW of formally suspending any and all continuing relationships while affirming IRUSA’s “total independence and autonomy,” the lawsuit said.

Some of the allegations linked to IRW will be viewed by government authorities as attributable to IRUSA, thus negatively affecting the plaintiff’s reputation, the lawsuit said.

“Loss of reputation would, in turn, threaten to end IRUSA’s ability to fund and provide for humanitarian assistance in the U.S. and globally,” the complaint reads.

“IRUSA was told by U.S. governmental entities that its tax-exempt status would be threatened if it continued to maintain any operational or institutional relationships with IRW.

“IRUSA informed IRW in detail of these risks, yet IRW has not only refused to cooperate in taking steps to avoid such existential risks but took further steps to increase those risks to IRUSA.”

In an email sent to The Epoch Times, an IRW spokesperson said: “We do not recognize that characterization of our organization and have consistently rejected such claims.

“Islamic Relief Worldwide operates to high standards of governance, compliance and oversight across all our programs. As this is subject to ongoing legal proceedings, it would not be appropriate to comment further. Our focus remains on delivering humanitarian support to vulnerable communities around the world.”

The Epoch Times reached out to IRUSA for comment but did not receive a response by publication time.

Commenting on the matter, Smith said that the Ways and Means Committee will continue to expose wrongdoing in the tax-exempt sector to ensure that U.S. taxpayers do not end up subsidizing illegal activities.

“I am committed to ensuring those who enjoy generous benefits under our tax code are not funding, affiliated with, or participating in activities that violate their 501(c)(3) status,” Smith said in a statement.

“IRUSA’s decision to sever financial ties is a significant response that would never come about but for our Committee’s oversight of the 501(c) sector.”