Bloomberg Tax
July 13, 2020, 8:45 AM UTC

Trump Review of Colleges’ Tax-Exempt Status Faces Legal Hurdles

Colin Wilhelm
Colin Wilhelm
Reporter
Sam McQuillan
Sam McQuillan
Reporter
Andrew Kreighbaum
Andrew Kreighbaum
Reporter

President Donald Trump’s call to investigate the nonprofit status of universities could run into legal problems, including guardrails Congress placed on the IRS after a scandal over the agency’s scrutiny of nonprofit status of conservative political groups.

“Too many Universities and School Systems are about Radical Left Indoctrination, not Education,” Trump said on Twitter July 10. “I am telling the Treasury Department to re-examine their Tax-Exempt Status.” Trump hascalled for schools at all levels to reopen for in-person classes this fall.

Congressional restrictions—in addition to other legal issues—could make Trump’s directive illegal and in violation of the First Amendment, ...

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