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Thursday, January 15, 2009

The I.R.S. Considers Pressing Schools to Further Reveal Their Business Activities

So, is your school one of the 400 that are being looked into by the IRS right now?
The Internal Revenue Service is considering expanding its scrutiny of colleges and universities to focus on billions of dollars associated with academic research, federal financing and intellectual property, a senior agency official said on Tuesday.

The expansion of an investigation would put pressure on the schools to further disclose their inner financial workings as the I.R.S. undertakes a major effort to learn more about whether academic institutions are improperly using their nonprofit status to avoid paying certain taxes.

The expansion, while not yet certain, “is on the table,” Lois G. Lerner, the I.R.S.’s director of exempt organizations, said in a brief interview.

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