Harvard University just found itself in the political hot seat again—this time over its tax-exempt status. It all started with a post by former President Donald Trump, and now the IRS is officially being asked to take action. Let us break it down for you in simple terms.
Why did Trump say Harvard should lose tax-exempt status?
This began when Donald Trump took to Truth Social on Tuesday. In his own words, he wrote:
“Perhaps Harvard should lose its Tax Exempt Status and be Taxed as a Political Entity if it keeps pushing political, ideological, and terrorist inspired/supporting ‘Sickness?’ Remember, Tax Exempt Status is totally contingent on acting in the PUBLIC INTEREST!”
Trump believes Harvard is using its platform for political and ideological reasons. In his opinion, that goes against what a tax-exempt organization should be doing.
Here is the thing—schools like Harvard are allowed to keep their tax-exempt status as long as they follow the rules:
- They must act in the public interest.
- They are not allowed to get involved in political campaign activity.
- They must meet the IRS criteria for nonprofit or educational institutions.
So when Trump says Harvard is behaving like a political group, he is suggesting they no longer meet those requirements.
Can the IRS really remove Harvard’s tax exemption?
Yes—but only under certain conditions.
The Internal Revenue Service is the only agency that can officially revoke a tax-exempt status. They usually do this after reviewing whether an organization still qualifies based on the law. This is something the IRS normally does quietly and without political pressure.
But now things are changing –
- The Treasury Department just sent a request to the IRS asking them to investigate Harvard’s status.
- Andrew De Mello, the IRS’s acting chief counsel, received the inquiry on Wednesday.
- This came only one day after Trump made his public statement.
This kind of move—where a former president calls for action and the IRS quickly follows—has raised eyebrows.
Is this political interference in the IRS?
Many experts are saying yes.
Steve Rosenthal, a senior fellow at the Tax Policy Center, spoke out against it. He told The Washington Post:
“The IRS is supposed to administer the tax rules impartially, not pursue political vendettas against exempt organizations.”
Here are a few reasons this feels political to some people:
- Trump made the suggestion one day earlier.
- The IRS recently went through major staffing cuts—firing over 7,000 employees, most of whom worked in tax compliance.
- On Tuesday, Trump picked Gary Shapley—a known IRS whistleblower—to serve as acting commissioner.
All of this adds to the feeling that political motives could be behind this push.
Why is Harvard being targeted now?
This is not the first time Harvard has clashed with the Republican party. The school has faced pressure over its public stances and recent controversies, and there have been calls for the government to cut off certain funding.
But losing its tax-exempt status? That would be a big deal—something that could open the door for more schools to be targeted in the future.
