Washington D.C. - The IRS is actively reviewing Harvard University's tax-exempt status and a decision is expected in the coming days, according to sources who spoke with ABC News on Thursday. The review focuses on the university's multi-billion dollar endowment and how it aligns with the requirements for maintaining tax-exempt status under section 501(c)(3) of the Internal Revenue Code.
Specifically, the IRS is examining whether Harvard's financial practices and the utilization of its endowment funds sufficiently serve its educational mission and benefit the public. Concerns have been raised about the accessibility of Harvard's resources to students from diverse socioeconomic backgrounds and whether the university is appropriately addressing affordability challenges.
If the IRS decides to revoke Harvard's tax-exempt status, the university would be required to pay corporate income taxes on its net investment income, potentially impacting its financial resources and ability to fund scholarships, research, and other educational programs. The decision could also set a precedent for other wealthy universities with substantial endowments. Harvard University has declined to comment on the ongoing review but has previously stated its commitment to financial aid and expanding access to education.
IRS Weighing Harvard's Tax-Exempt Status
The Internal Revenue Service (IRS) is reportedly considering whether to revoke Harvard University's tax-exempt status. Sources familiar with the matter told ABC News that a decision could be reached soon. This action follows scrutiny of the university's endowment and financial practices. The outcome could have significant implications for Harvard and other institutions with large endowments.
Source: Read the original article at ABC