Key Points ・President Trump has publicly called for Harvard’s nonprofit status to be revoked, accusing the university of ideological bias and refusing federal demands. ・Federal law prohibits the president or executive branch from directing the IRS to audit or investigate a specific taxpayer,

President Trump had threatened the move on social media after Harvard refused to comply with administration demands to make policy changes and agree to federal oversight.

The IRS is making plans to rescind the tax-exempt status of Harvard University, according to two sources familiar with the matter, which would be an extraordinary step of retaliation as the Trump administration seeks to turn up pressure on the university that has defied its demands to change its hiring and other practices.