Emory Says Endowment Tax Means Multimillion-Dollar Bill

Oct. 3, 2019, 9:37 PM

A tax on endowment income means Emory University is facing an unexpected multimillion-dollar tax bill, it told the IRS.

Emory, in Atlanta, urged the agency to waive underpayment penalties for the tax years before it issues final guidance on the tax, as well as for the year that the guidance is issued. The IRS in June released proposed rules on the 1.4% tax, which was created in the tax overhaul and is aimed at wealthy colleges.

Harvard University, which fought back against the measure when lawmakers were writing the overhaul legislation, is among the 30 or so colleges that could ...

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