IRS discovers Harvard and 33 other colleges underpaid taxes
- Harvard, Cornell and the University of Texas disclosed that they were among 34 colleges found by the U.S. Internal Revenue Service to have underpaid taxes on businesses and employment compensation.
- The IRS began a study of private nonprofit and public universities in 2008 and says it has collected over $7 million in payroll taxes and fines after auditing the institutions, which it left unidentified.
- Additionally, the IRS may collect an additional $60 million in unrelated business income taxes from the schools, and it has also told several of the institutions to change the way they account for facilities used by the public, like golf courses and fitness centers, that generate taxable income.
From the article:
The U.S. Internal Revenue Service found in audits of Harvard University and 33 other colleges that many are failing to pay sufficient taxes on businesses they own, as well as on employee compensation. ...
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