President Donald Trump has sparked a potential constitutional crisis with his recent threat on Truth Social to strip Harvard University of its tax-exempt status, citing the institution’s alleged political bias and failure to support his agenda. However, legal experts warn that the president’s public declaration may have unintended consequences, ultimately undermining any potential action by the IRS.
The Constitution prohibits government officials from directing the Internal Revenue Service (IRS) to investigate or audit taxpayers based on their political beliefs or affiliations. This is enshrined in a 1998 law titled “Prohibition on executive branch influence over taxpayer audits and other investigations.” The statute explicitly states that it shall be unlawful for any applicable person, including the president, vice president, or their employees, to request an audit or investigation of a particular taxpayer.
Genevieve Lakier, a First Amendment expert at the University of Chicago Law School, describes Trump’s social media post as “dumb” and “not helpful.” She argues that the president’s public threat raises serious questions about whether his actions are motivated by retribution rather than genuine concern for the public interest. Harvard, in its defense, has already pointed out that the government has historically exempted universities from taxes to support their educational mission, and revoking that status would endanger the institution’s ability to carry out its duties.
Edward McCaffery, a tax law professor at the University of Southern California Gould School of Law, agrees that the president’s politicization of this issue is detrimental. He notes that if the IRS were to move forward with stripping Harvard of its status, it could potentially take years and would likely focus on the administration’s claims about the university’s record of antisemitism and diversity, equity, and inclusion programs.
Jeffrey Tenenbaum, a Washington, D.C., attorney specializing in nonprofit organizations, emphasizes that the IRS would face an “uphill climb” if it decided to pursue action against Harvard. He explains that the process typically involves an audit or examination, which can take months or over a year, followed by appeals and potential litigation in federal court.
While it is possible for the IRS to revoke Harvard’s tax-exempt status, any such move would need to be based on evidence of violations of public policy rather than political preference. McCaffery expresses skepticism that the agency could successfully make this case, particularly given Trump’s continued involvement on social media.
Ultimately, President Trump’s threat against Harvard’s tax-exempt status has ignited a complex legal debate with far-reaching implications for higher education in America. As the situation unfolds, it remains to be seen whether the president’s actions will ultimately lead to a reconsideration of the institution’s status or simply serve as a distraction from more pressing issues facing the nation.
Sourced from https://www.nbcnews.com/