Neal Sher asked the IRS to punish the institution over its handling of protests that forced out a board member whose firm sold anti-rioting gear to Israel.
The halt in security cooperation is in response to the death of Palestinian Authority minister Ziad Abu Ein following a confrontation with Israeli soldiers during a protest in the West Bank.
Dozens of local residents and activists were protesting the Jewish settlement outpost Adei Ad by planting olive trees on land that they believe is in danger of being confiscated by Israel.