IRS Failing to Detect Insider Trading on College Exchanges

A lack of IRS oversight has allowed insiders at for-profit colleges to to benefit improperly when they convert their institutions to nonprofits, a government watchdog said Wednesday.

The IRS is failing to identify cases where officials at for-profit schools use their leadership roles at tax-exempt buyers to drive prices up for their own benefit, the Government Accountability Office said in a report. The GAO called for the tax agency to assess and revise its review process, and solicit information on the annual forms exempt organizations file to help it identify colleges with a for-profit history.

For-profit colleges can be ...