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 IRS 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. The treasury department did not respond to a request for comment. CNN first reported that the IRS was looking at potentially rescinding Harvard’s tax-exempt status.

Federal law bars the President from either directly or indirectly requesting the IRS to investigate or audit specific targets. The IRS does at times revoke tax exemptions from organisations for conducting too many political or commercial activities.

New York Times News Service