IRS Plans to Revoke Harvard’s Tax-Exempt Status at DJT’s Behest

Donald Trump told the Internal Revenue Service he wants tax-exempt status stripped from Harvard University, so the agency is preparing to do it.

Universities often have 501(c)(3) tax status, which makes them exempt from income tax and makes donations to them tax-deductible on donors’ income tax returns. Churches, schools and charities also often have this tax status.

There is no hint that Harvard has failed to comply with the requirements for tax-exempt status.

Harvard refused to allow the Trump regime to dictate changes to the way the university operates. Trump’s initial retaliation stripped $2.2 billion in grants and $60 million in federal contracts from this university. Attacking its tax-exempt status without any sign of an infraction and without going through standard procedure is his next retaliatory action.

Normally, when the tax status of a university is questioned, the first step notice from the IRS. A full audit ensues and the IRS obtains documents from the university to review. If the IRS finds issues, agency officials meet with representatives from the organization. This often leads to agreement which corrects the issue and avoids revoking the tax status.

If Harvard’s tax-exempt status is revoked, the university can file a lawsuit in Tax Court or other federal courts, seeking reinstatement. Appeals can go as far as the Supreme Court.

It is not clear whether Trump will also attack the tax-exempt status of other universities, many of which are banding together in mutual defense pacts.

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