The California chapter of the largest Muslim charity in the US may lose its tax exempt status over its organization of anti-Israel protests, The Post has learned.

The powerful tax-writing Ways and Means Committee of Congress is calling upon the Internal Revenue Service to investigate the Council on American-Islamic Relations in the state, its largest stronghold in the US.

The IRS has the power to remove tax exempt status of a charity if it does not demonstrate that it operates exclusively for charitable, educational or religious purposes. Despite its Muslim roots, CAIR-CA is a public and not a religious nonprofit.

CAIR “institutionally endorsed and materially supported several encampments on college campuses across California, some of which resulted in violations of the law,” says the Jan. 13 letter to acting US Secretary of the Treasury Scott Bessent and IRS Chief Executive Officer Frank Bisignano, which has been seen by The Post.

The letter was sent by Missouri Rep. Jason Smith, chair of the Committee on Ways and Means.

CAIR California’s Chief Executive Officer Hussam Ayloush responded with the chapter’s own letter to the IRS, denying any wrongdoing and condemning “hate, terrorism and extremism in all forms.”

In a comment to The Post, a lawyer for the group said: “Contrary to the false claims made by Mr. Smith, CAIR-California is a respected civil rights organization with a long record of lawful advocacy and cooperation with government agencies.”

Last year, two government watchdog groups demanded a high-level investigation into CAIR California over the disappearance of more than $7 million in federal cash that was earmarked to help resettle impoverished immigrants.

In what appears to be a sleight of hand, the money — $7,217,968.44 — was sent to CAIR-Greater Los Angeles and not to CAIR-CA, which was the only group eligible to receive it, according to studies by the Intelligent Advocacy Network (IAN) and the Network Contagion Research Institute.

The Greater Los Angeles chapter of the Muslim organization is not a registered nonprofit and not eligible to handle charitable donations, IAN claimed in its complaint.

“Not only is CAIR-CA suspected of endorsing the disturbing of classes, shutting down of college campuses and impeding of Students’ access to education,” but one recent report found that CAIR-CA solicited food and supplies to support prolonging these encampments,” the letter says.

Last year The Post revealed CAIR and another charity set up a “Champions of Justice Fund,” as “institutional endorsement,” awarding checks of $1,000 to Anti-Israel agitators who spread disruption at US colleges.

The money way offered as interest free loans in grants of $1,000 to students who lost “scholarships, housing or other support because of their advocacy,” according to CAIR’s website.

In October 2024, CAIR awarded $20,000 through the “Champions of Justice Fund” in loans and scholarships to 20 student protestors.

The identities of the student recipients have never been revealed, but the institutions they attend were in CAIR’s literature, and included Columbia University, University of Pennsylvania and Harvard.

Also last year, Texas governor Greg Abbott designated CAIR a terrorist organization along with the Muslim Brotherhood. CAIR is suing the state, saying the designation infringes on its First Amendment rights.