Representative Alma S. Adams Introduces Bill to Increase IRS Oversight on University Tax Inquiries
Representative Alma S. Adams has introduced H.R. 10330, the Higher Education Oversight for Nonprofits Ensuring Standards and Transparency Act, which seeks to establish new regulations for IRS investigations and audits of colleges and universities. The bill, introduced on September 10, 2026, with 17 cosponsors, aims to make it more challenging for the IRS to initiate and conduct tax inquiries into universities without adhering to specific preliminary steps. The legislation broadly defines 'university' to include institutions of higher education and their related organizations. It applies to tax inquiries concerning a university's tax-exempt income, nonprofit status, or engagement in unrelated business activities that could be taxable. Before an inquiry can begin, a high-level Treasury official must reasonably believe a tax issue exists, based on written facts. The IRS would also be required to provide written notice to the university, detailing the concerns, general subject matter, and legal rights, includi...