Trump says he is withdrawing Harvard’s tax-exempt status

United States President Donald Trump on Friday 2 May said his administration would revoke Harvard University’s tax-exempt status, escalating his fight with the nation’s oldest institution of higher education, writes Bianca Quilantan for POLITICO. “We are going to be taking away Harvard’s Tax Exempt Status,” Trump wrote in a social media post. “It’s what they deserve!”

Harvard, along with many other universities across the country, are exempt from paying taxes because they are included in section 501(c)(3) of US tax code which designates them as non-profits.

The Internal Revenue Service could yank Harvard’s tax-exempt status, though not without cause. It would be required to show the school is violating long-standing rules governing when entities can receive a tax exemption. That would likely be a lengthy process, and Harvard would be free to challenge the decision in court – a case some experts have said the school would likely win.
Full report on the POLITICO site