NAICU Washington Update

Treasury to Review Tax-Exempt Rules

August 07, 2020

Treasury Secretary Steven Mnuchin announced that he expects the agency to conduct a review of guidance related to the criteria for tax exemptions.  This announcement comes on the heels of President Trump’s request to the Treasury Department last month via Twitter to look into the tax-exempt status of colleges and universities.  The president expressed his concern that many institutions “are about radical left indoctrination, and not education.” 
Responding to the president’s action, House Ways and Means Chairman Richard Neal (D-MA) followed up with a letter to IRS Commissioner Charles Rettig asking for oversight of the president’s request, and stating that under the federal tax code, it is unlawful for the president to ask the Treasury Department to investigate specific taxpayers.
The Treasury Department’s Office of Inspector General and Inspector General for Tax Administration responded to Chairman Neal that they had not been directed to investigate, nor had they investigated, any specific college or university. 
The likely next steps for the Treasury Department include a review of long-standing IRS criteria for qualifying for tax-exemption, rather than reviewing specific institutions.  Chairman Neal has indicated he will continue to monitor any actions the department undertakes on this issue.

MORE News from NAICU