IRS Looks Into Colleges Cheating on Taxes
Not-for-profit universities don’t pay a dime in taxes until they run businesses that bring in revenue that is unrelated to educational goals. This regulation has been around since 1950, and imposes taxes on a broad set of “unrelated business incomes.” However, many schools seem to have been cheating the regulations. A 33-page IRS questionnaire sent out in 2008 prompted investigation into more than 30 universities.
Details are still limited, but the following schools have confirmed being under IRS scrutiny and may see a loss in revenue: Notre Dame, Purdue, the University of Texas at Austin, Texas A&M, the University of North Carolina, the University of Georgia, Lamar University, the University of Central Florida, Yeshiva University, Suffolk University, and Harvard University.