IRS May Expand College Investigation

The Internal Revenue Service may expand its scrutiny of colleges and universities to include a look at money associated with academic research, federal financing, and intellectual property, a senior agency official said yesterday, reports The New York Times.

As part of the current investigation, questionnaires were sent to 400 private and public universities and colleges asking about their executive compensation and business activities. The expansion of the investigation may take the form of an additional questionnaire, said Lois G. Lerner, the agency’s director of exempt organizations, and would most likely examine universities’ investments in offshore hedge funds.

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