The Internal Revenue Service (I.R.S.) is now weighing whether to revoke Harvard’s tax exemption as the Trump administration demands that the university make changes to its hiring, admissions, and curriculum policies. Fordham Law Professor Gowri Krishna ’06 spoke to The New York Times about whether the I.R.S. can revoke tax-exempt status of an educational institution.
Can the I.R.S. revoke tax-exempt status?
The I.R.S. determines which organizations meet the criteria for tax-exempt status. The agency has at times revoked tax-exempt status, including after audits that found political or commercial activities that violated the terms of eligibility.
In the past, the I.R.S. has challenged the tax exemptions of educational and other institutions under both Republican and Democratic administrations, according to Gowri Krishna, a professor at Fordham University School of Law who specializes in nonprofit law.
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In a statement, Harvard said that there was no legal basis for rescinding its tax status. Any attempt to take away Harvard’s tax exemption would be likely to face a legal challenge, which tax and legal experts expect would be successful.
“Harvard would argue there’s a violation of its free speech and academic freedom,” Ms. Krishna said. “I think it would be highly, highly unlikely that the government would win.”
Read “What Is Tax-Exempt Status and Can the I.R.S. Revoke It From Harvard?” in The New York Times.