Tuesday, September 30, 2008

College Knowledge--A Tax Form for Universities to Complete

  • Full Accounting Web link

  • Senator Charles Grassley (R-IA and ranking member of the Senate Finance Committee) has asked the IRS to prepare a separate form for colleges and universities to complete in lieu of the traditional Form 990. The form would require a greater level of disclosure related to student populations, endowments and executive compensation. A spokesman for Independent Colleges and Universities criticized the idea, saying that an unintended consequence might be a increase in tuition. Grassley's proposal may have been influenced by results of a recent Form 990 from Harvard University, which forced the well-known institution to provide greater levels of financial aid to its students.

    My initial inclination would be similar to Law professor Jon Forman--"let the sunshine in." Most public universities are having to provide greater levels of disclousure to boards of trustees as is; it should not be greatly incremental more difficult (assuming an IRS form with sufficient clarity, not always a safe assumption) to provide the info to the IRS. Heaven knows that university faculty and administrators have called for greater business disclosure on plenty of occasions.


    Blogger Tina said...

    First off, thanks for all of the insightful you provide. I'm a regular visitor to this site...I came across an article about taxes this morning that I would love to share with you.
    Take a peek and enjoy. Cheers.

    1:14 PM  

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