Page Reader AI | Trump Administration Asks IRS to Start Process to Revoke Harvard’s Tax-Exempt Status

Trump Administration Asks IRS to Start Process to Revoke Harvard’s Tax-Exempt Status - WSJ

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Key Action:

The Trump administration requested the IRS to begin proceedings to revoke Harvard University's tax-exempt status.

Reasoning:

The request aimed to challenge Harvard's 501(c)(3) status, impacting donor tax deductions and the university's tax obligations on net earnings.

Harvard's Status:

Harvard currently benefits from federal income tax exemption as a 501(c)(3) educational institution.

Initiator:

Treasury Department officials directed the IRS' acting chief legal counsel, Andrew De Mello, to proceed with the plan to revoke the status.

The Trump administration has requested that the Internal Revenue Service start the process of revoking Harvard University’s tax-exempt status, according to people familiar with the matter.Officials at the Treasury Department asked the IRS’s acting chief legal counsel, Andrew De Mello, to move ahead with a plan to revoke Harvard’s key status, which lets donors get tax deductions for contributions and keeps the university from paying taxes on any net earnings. Harvard is exempt from federal income tax as it operates as a 501(c) (3) educational institution.