IRS Faces Potential Issues from Trump's Post Threatening Harvard's Tax-Exempt Status
Harsh Truth: Trump's Threat to Harvard's Tax-Exempt Status
Donald Trump's veiled threat to snatch Harvard University's tax-exempt status sticks out like a sore thumb, legal experts warn. In a Truth Social post, the former president declared, "We are going to be taking away Harvard's Tax Exempt Status. It's what they deserve!"
While the Internal Revenue Service (IRS) holds the authority to make Trump's dream a reality, his social media tactic aims at Harvard adds a complication. Genevieve Lakier, a First Amendment expert at the University of Chicago Law School, bluntly stated that Trump's social media post was "dumb" and "not helpful."
Lakier pointed to the 1998 law that explicitly bars the president, along with other government officials, from ordering the IRS to scrutinize specific taxpayers. This law constitutes a major obstacle in Trump's quest to strip Harvard of its tax-exempt status at his behest.
The president isn't new to picking fights with educational institutions he deems unsupportive of his agenda. In late April, Trump lashed out against Harvard, threatening to categorize it as a "Political Entity" if it persisted in pushing "political, ideological, and terrorist inspired/supporting 'Sickness?'"
Legal experts warn that the president's best bet would be to argue that he did not initiate the action but merely announced something that was already underway independently. However, this approach is also problematic, as it seemingly attempts to intimidate Harvard, which is currently embroiled in a court battle with Trump's administration over funding cuts. Experts argue that such actions are still unconstitutional and constitute a clear violation of the First Amendment.
If the IRS were to consider revoking Harvard's long-held tax-exempt status, the process would be lengthy and complex, ranging from months to years. The procedure would require a thorough audit of the institution, followed by appeals within the IRS and ultimately in the federal court system, in the event of an unfavorable decision.
Any IRS move to revoke the status would likely center around accusations of antisemitism and the failure to discontinue diversity, equity, and inclusion programs as the government demands. However, legal experts remain skeptical that the agency would successfully make such a case, especially if Trump continues to meddle on social media. As Edward McCaffery, a tax law professor at the University of Southern California Gould School of Law, puts it, "Glib references and making it seem like the president is fight with the board of trustees is not helpful."
- Despite the Internal Revenue Service (IRS) having the authority to revoke Harvard University's tax-exempt status, a 1998 law explicitly bars the president, along with other government officials, from ordering such scrutiny, constituting a major obstacle for Trump's quest.
- Genevieve Lakier, a First Amendment expert at the University of Chicago Law School, deemed Trump's social media post regarding Harvard as "dumb" and "not helpful," as it harbors implications for politics and education-and-self-development.
- The president's best bet would be to argue that he did not initiate the action but merely announced what was already underway independently, as using government position to politicize tax issues might lead to public backlash and general-news scrutiny concerning revenue and funding.
- Experts suggest that the IRS might focus on accusations of antisemitism and the failure to comply with the government's demands regarding diversity, equity, and inclusion programs if they were to consider revoking Harvard's tax-exempt status, which could potentially lead to deductions and reallocation of resources for the institution.
- Edward McCaffery, a tax law professor at the University of Southern California Gould School of Law, remarked that Trump's glib references and using social media to seem as if he is fighting with Harvard's board of trustees might not be helpful, which further highlights the nuanced nature of politicizing taxes, education, and self-development in America.
