Donald Trump in a post on Truth Social platform wrote, "Perhaps Harvard should lose its Tax Exempt Status and be Taxed as a Political Entity if it keeps pushing political, ideological, and terrorist inspired/supporting ‘Sickness?’ Remember, Tax Exempt Status is totally contingent on acting in the PUBLIC INTEREST!"
The row between the Trump administration and the prestigious Harvard University deepens as CNN reports, the Internal Revenue Service of US plans to rescind the tax-exempt status of the university as part of Trump administration's attempt to retaliate against them for rejecting their demands.
CNN cited sources and reported that 'a final decision on rescinding the university라이브 바카라 tax exemption is expected soon'.
Trump administration recently announced that it's freezing more than $2.2 billion in grants and $60 million in contracts to Harvard University, after the university cited their constitutional right to determine their own teaching practices.
Donald Trump in a post on Truth Social platform wrote, "Perhaps Harvard should lose its Tax Exempt Status and be Taxed as a Political Entity if it keeps pushing political, ideological, and terrorist inspired/supporting ‘Sickness?’ Remember, Tax Exempt Status is totally contingent on acting in the PUBLIC INTEREST!"
President Donald Trump has also spoken about his aim to punish Ivy League universities if they do not comply with his administration's demands which includes curb on campus activism as a campaign to fight antisemitism.
Education Secretary Linda McMahon told CNN that she doesn’t know whether Harvard will lose its tax exempt status but argued “it was certainly worth looking into.”
"We’ll see what IRS comes back with relative to Harvard," McMahon told CNN.
She added, "I certainly think, you know, in elitist schools, especially that have these incredibly large endowments, you know, we should probably have a look into that."
McMahon added that it is her “guess” that the IRS is also looking at tax exempt statuses of other universities.
As per reports, the not-for-profit organizations that benefit from the tax exemption can lose their status if they violate a number of rules which includes 'political activity'.
IRS has very rarely rescinded an university for such a reason.
Reportedly, the US law specifically prohibits presidents from directing the IRS to investigate anyone in a section entitled: “Prohibition on executive branch influence over taxpayer audits and other investigations.”
The IRS falls under the Treasury Department and so far it has been actively protected from politics.
Mark Mazur, who was assistant secretary of treasury for tax policy at the outset of the Biden administration told CNN that in order to shield IRS from political intervention, it has only two politically appointed officials.
The Harvard University would first receive a notice from the IRS, informing them about the audit and requesting documents for the agency to review.
Further, representatives from the nonprofit would meet with IRS officials to explain their position.
In such cases, the IRS is looking to correct an issue, so deals are commonly worked out to avoid revocation.
Nina Olson, who served from 2001 to 2019 as the independent national taxpayer advocate within the IRS, told CNN, "It takes a long time. There라이브 바카라 a fundamental requirement that IRS tell people what the concerns are, so they can come in and explain things. They have a right to challenge the government라이브 바카라 position and a right to be heard."
"If the IRS ultimately revokes tax-exempt status, federal law gives nonprofits the right to file a lawsuit in United States Tax Court, or other federal courts. They can appeal all the way to the Supreme Court", Olson added.
This is not the first time that the Trump administration has threatened colleges across US to cut off their funding unless their demands are met but this is the first time that an elite university like Harvard has resisted and rejected White House's demands.