IRS FINALIZES RULES ON ENDOWMENT EXCISE TAX

The Internal Revenue Service and Treasury Department last week released the final rules implementing the so-called endowment tax on colleges and universities approved as part of the 2017 tax reform bill.

The measure created a 1.4 percent excise tax on net investment income at private colleges and universities with at least 500 tuition-paying students and assets of at least $500,000 per student. The IRS anticipates that about 25 to 40 institutions will fall under this definition. 

NEW NPRM TO TAKE UP ACCREDITATION CREDIT HOUR DEFINITION AND MORE

The Department of Education released a Notice of Proposed Rulemaking last week to convene more negotiated rulemaking committees. This time the Department plans to take up issues related to a number of issues related to accreditation, distance education modalities and faith based education. Among the specific issues they aim to address, the Department plans to hold several negotiated rulemaking sessions to discuss

  • Requirements for accrediting agencies in their oversight of member institutions;
  • Requirements for accrediting agencies to honor institutional mission;
  • Criteria used by the Secretary to recognize accrediting agencies, emphasizing criteria that focus on educational quality;
  • Developing a single definition for purposes of measuring and reporting job placement rates; and
  • Simplifying the Department’s process for recognition and review of accrediting agencies.
  • Additionally the committee will take up issues related to State Authorization, Definition of a Credit Hour, the Definition of Regular and Substantive Interaction.

Public comments and recommendations are open until September 14, 2018.