I.R.S. Is Said to Be Considering Whether to Revoke Harvard’s Tax-Exempt Status

The Internal Revenue Service is weighing whether to revoke Harvard’s tax exemption, according to three people familiar with the matter, which would be a significant escalation of the Trump administration’s attempts to choke off federal money and support for the leading research university.

President Trump on Tuesday publicly called for Harvard to pay taxes, continuing a standoff in which the administration has demanded the university revamp its hiring and admissions practices and its curriculum.

Some I.R.S. officials have told colleagues that the Treasury Department on Wednesday asked the agency to consider revoking Harvard’s tax-exempt status, according to two of the people, who spoke on the condition of anonymity to describe internal conversations.

An I.R.S. spokeswoman declined to comment. The Treasury Department did not respond to a request for comment. CNN first reported that the I.R.S. was looking at potentially rescinding Harvard’s tax-exempt status.

Federal law bars the president from either directly or indirectly requesting the I.R.S. to investigate or audit specific targets. The I.R.S. does at times revoke tax exemptions from organizations for conducting too many political or commercial activities, but those groups can appeal the agency’s decision in court. Any attempt to take away Harvard’s tax exemption would be likely to face a legal challenge, which tax experts expect would be successful.

Harrison Fields, a White House spokesman, said the I.R.S.’s scrutiny of Harvard began before the president’s social media post.