The Trump administration directed the Internal Revenue Service (IRS) to revoke Harvard’s tax-exempt status on Wednesday, just a day after President Trump suggested it.
Andrew De Mello, the acting advisor to the IRS, was scrutinized by the Treasury Department on Wednesday. Washington Post.
“Perhaps Harvard should be taxed as a political entity if it loses its tax-exempt status and continues to promote itself as ‘support/support the disease,’ as it is influenced by political, ideological, and terrorist elements,” Trump posted on Truth Social on Tuesday. “Keep in mind that tax-exempt status is wholly contingent upon actions that serve the public interest!”
Tax exemptions are granted to nonprofits, social welfare organizations, religious entities, and various educational institutions that satisfy government criteria. However, these organizations are prohibited from engaging in political campaigning activities.
Only the IRS has the authority to examine and revoke the current status of a tax organization, typically acting without the influence of the president, in accordance with tax law.
This situation marks the latest episode in the institution’s public clash with the Republican administration, which has resisted a series of demands to retain federal funding.
“The IRS should enforce tax regulations impartially, rather than seeking political retribution against exempt organizations,” stated Steve Rosenthal, a senior fellow at the Center for Tax Policy, a think tank based in Washington, as reported by the Post.
On Tuesday, Trump appointed Gary Shapley, an IRS employee who provided testimony during a Hunter Biden tax investigation, as IRS representative, while reorganizing other personnel. Last month, the agency announced its third round of staffing reductions following the dismissal of nearly 7,000 court employees.
The Hill reached out to the Treasury, White House, and IRS for their responses.
