Harvard Is Tax-Exempt. You’re Not. Here’s What the IRS Can Do.

Harvard University’s coffers are massive – its endowment is about $50.7 billion – and yet Harvard pays virtually no federal income tax thanks to a special tax exemption. In fact, as a nonprofit educational institution, Harvard can legally avoid paying most US taxes on its income. Meanwhile, you, as an ordinary taxpayer, don’t get that luxury. You can’t just declare your income exempt from taxation the way Harvard can. The law expects IRS tax payments from you, rain or shine, and if you don’t pay, the IRS will make sure you face the consequences. It’s a frustrating, fundamental unfairness: Harvard is tax-exempt, you’re not.

This isn’t just a theoretical gripe. Recent tax exemption news highlights how protected Harvard truly is. In April 2025, headlines revealed that the IRS – reportedly under pressure from the White House – was considering revoking Harvard’s exempt status. This high-profile IRS Trump showdown grabbed national attention. Yet Harvard boldly (and correctly) insisted there was no legal basis for stripping its protection. In other words, Harvard knows it has ironclad tax privileges and an army of attorneys to defend them. Harvard isn’t losing sleep over taxes or the IRS. But what about you? Who’s in your corner when the IRS comes knocking? The sad truth is that while billion-dollar institutions can laugh off threats, everyday Americans are far more vulnerable. If the IRS claims you owe money, they won’t shrug and walk away – they will come after you. And unlike Harvard, you don’t have built-in protections or political influence to shield you. You’re exposed! unless you have a powerful defender of your own.

What the IRS Can Do to You

The IRS is the most powerful collection agency in the United States. If you owe taxes (or the IRS thinks you do), they have a frightening arsenal of tools to enforce payment. Remember, you’re not Harvard, the IRS knows it can leverage these actions against regular people like you without hesitation. Here’s what the IRS can legally do if you fall behind on your taxes:

• Garnish Your Wages: The IRS can snatch a portion of your paycheck before you even see it. They can legally require your employer to send a significant part of your wages to the IRS to cover your tax debt. This isn’t a small bite – the IRS can leave you with just enough to meet basic needs and divert the rest to your unpaid taxes. Imagine working hard and seeing a chunk of your salary vanish; that’s the reality for many people with IRS wage garnishments.
  
  

• Levy Your Bank Accounts: The IRS can freeze and seize the money in your checking or savings account. One day you might attempt to pay a bill or withdraw cash, only to discover your bank account has been emptied or locked by an IRS bank levy. The IRS can take what’s in your account to apply toward your tax debt, without needing a court order.
  
  

• File Federal Tax Liens: Owe the IRS for long enough, and they can file a lien on your property. An IRS lien is a public claim to everything you own – your house, your car, your personal property. It gets recorded in public records, humiliating you by announcing to the world (including lenders and creditors) that the government has a right to your assets. A tax lien makes it nearly impossible to sell or refinance your home and can even jeopardize your job prospects (many employers check credit reports).
  
  

• Seize Property and Assets: If a lien isn’t enough to make you pay, the IRS can escalate to seizure. They have the power to seize and sell valuable assets you own. This can include your car, valuable jewelry, business equipment, and even your house in extreme cases. The law does protect certain essentials, but don’t think the IRS won’t seize something you really care about. They’ve seized vacation homes, boats, and retirement accounts to satisfy tax debts. It’s rare for a primary residence to be taken for small tax debts, but for larger ones, nothing is off the table. The threat is very real.
  
  

• Pile on Penalties and Interest: The IRS makes sure that a tax debt grows if it’s not paid. They will add penalties and interest on top of the original amount. For example, the failure-to-pay penalty is 0.5% of the unpaid tax per month, up to 25% of the balance. That’s on top of interest charges. Over time, a small tax bill can snowball into an overwhelming debt due to these extra charges. Falling behind on your taxes is costly – the longer you wait, the more you owe.
  
  

• Pursue Legal Action (Even Criminal Charges): In severe situations, especially if the IRS thinks you intentionally cheated on your taxes, they can escalate matters to legal action. This might mean summoning you to court, and in cases of suspected tax fraud or evasion, referring your case for criminal prosecution. Yes, people do go to federal prison for serious tax crimes. This is not common for average folks who simply couldn’t pay – it’s usually reserved for willful tax evasion – but it’s absolutely within the IRS’s power to make your life a legal nightmare. Just knowing this possibility exists gives the IRS tremendous leverage over taxpayers.
  
  

Sounds scary? It is. These are not hypothetical threats; they’re real actions the IRS takes against regular Americans every day. Federal law grants the IRS these sweeping powers, and the agency will use them to collect on unpaid taxes. They don’t care if you’re going through a personal crisis, or if you’re not a wealthy university – if you owe, they will come. One IRS notice can turn your life upside down: paychecks gone, bank account locked, property at risk, credit score wrecked. 

Face the IRS with Confidence. Call our tax attorneys at (888) 342-9436 Today. An IRS notice or a growing tax bill can create serious pressure. But you are not without options. J. David Tax Law is ready to protect your interests and help shift the outcome in your favor. Let us be the advocate you need when it matters most.

How J. David Tax Law Can Level the Playing Field

You may not have Harvard’s billions or political clout, but you can have something Harvard has – a top-notch legal defense. J. David Tax Law is a firm dedicated 100% to protecting people like you from the IRS. Think of us as the great equalizer. When you hire J. David Tax Law, suddenly you’re not alone against the IRS’s onslaught – you have experienced tax attorneys and professionals fighting for you. Our mission is simple: to keep the IRS from steamrolling your life and to negotiate the best possible outcome for your tax issues. We’ve helped clients from all walks of life, across the nation, get real results against the IRS. We know the tax codes and IRS tax news updates inside-out, and we use that knowledge to shield you the way Harvard’s lawyers shield Harvard.

What can J. David Tax Law do for you? Here are some of the life-changing solutions we deliver to our clients every day:

• Offer in Compromise: If you owe more tax debt than you could ever realistically pay, you might qualify for an IRS Offer in Compromise. This is basically a settlement with the IRS for less than you owe – sometimes pennies on the dollar. It’s not easy to get an OIC accepted (the IRS scrutinizes your income, expenses, and assets closely), but our team has extensive experience preparing Offer in Compromise applications that get approved. We know how to present your case in the best light, showing that accepting a smaller amount is in the IRS’s interest too. The result? Your giant tax debt could be cut down to a much more manageable size – giving you a fresh start.
  
  

• Wage Garnishment Release: Is the IRS already garnishing your paycheck or about to start? We can put a stop to that fast. J. David Tax Law prides itself on swift action – in fact, we often achieve wage garnishment release within 48 hours of being hired. We contact the IRS immediately on your behalf, negotiate relief, and use every legal tool available to get that levy released. Imagine the relief of getting your full paycheck again, usually in the very next pay cycle. Our tax law attorneys make it happen so you can resume paying your bills and feeding your family without the IRS siphoning away your income.
  
  

• Currently Not Collectible (CNC) Status: Sometimes, you just can’t pay anything right now – and the IRS actually has a status for that. If you’re under serious financial hardship, we can help you obtain Currently Not Collectible status. That means the IRS will temporarily stop all collection activities against you. No more threatening letters, no more levies while you’re in CNC status. Interest may continue to accrue, but you get breathing room and peace of mind. We handle the paperwork and negotiations to prove to the IRS that forcing collection would be unfair and put you into economic hardship. This is a critical tool if you need time to get back on your feet.
  
  

• IRS Appeals Representation: Just because the IRS says you owe X amount or slaps you with a penalty doesn’t mean you have no recourse. You have the right to appeal IRS decisions, and we can represent you throughout that process. Our seasoned tax lawyers prepare compelling appeals to challenge incorrect audit results, unjust penalties, or unreasonable collection actions. Whether it’s an appeal of a hefty tax bill or a lien notice, we know how to navigate the IRS Appeals system to seek a better outcome. Our team will stand between you and the IRS in these negotiations, making the case for you. Often, just having qualified legal representation causes the IRS to moderate its stance. We fight for reductions in what you owe, removal of penalties, and more flexible payment terms. In short, we make sure your voice is heard and your rights are defended.
  
  

These are just a few examples of the solutions J. David Tax Law delivers. Every taxpayer’s situation is unique, and we tailor our strategy to your circumstances. Our goal is always the same: to resolve your IRS problem in the most favorable way possible, while protecting your assets and your sanity. We handle the tough conversations and complex paperwork so you don’t have to. You won’t have to dread opening the mailbox or answering the phone anymore – we take over those communications with the IRS.

Why Choose J. David Tax Law?

Not all tax law firms are created equal. If you’re going to trust someone to defend you against the IRS, you want the best. Here’s what sets J. David Tax Law apart and why countless clients across America put their trust in us:

• Award-Winning Service: J. David Tax Law is an award-winning tax firm known for excellence in client service and effective results. Our team’s dedication and success rate have earned us industry accolades – and, more importantly, the trust of people just like you.
  
  

• Proven Track Record (500+ Five-Star Reviews): We let our clients speak for us. Over 500 clients have left 5-star reviews raving about our services. That means hundreds of individuals and businesses have achieved tax relief and felt compelled to give us a perfect rating. That kind of satisfaction doesn’t come easy – we earn it with every case by going the extra mile.
  
  

• Fast Relief Within 48 Hours: Facing a wage garnishment or bank levy right now? We move urgently. In many cases, we secure wage garnishment relief within 48 hours – faster than most firms. We know that when your paycheck is on the line, time is critical. Our rapid-response approach can make the difference between another missed rent payment and immediate peace of mind.
  
  

• Nationwide Help in All 50 States: No matter where you live in the United States, J. David Tax Law can help you. We serve clients in all 50 states, from Florida to California, from Texas to New York. Our experts are well-versed in federal tax law (which applies everywhere) and we are just a phone call away. You don’t have to drive to an office or be local – we will work with you remotely, keeping you informed at every step.
  
  

• Free Consultation & Honest Advice: We offer a free initial consultation to evaluate your case. Free consultations mean you can discuss your tax problem with an experienced professional at no cost and no obligation. We’ll give you an honest assessment and explain your options clearly. If we don’t think we can significantly help your situation, we’ll tell you straight. And if you do become our client, you’ll always know exactly what we’re doing and why. Transparency and integrity are core values for us.
  
  

At J. David Tax Law, we combine legal expertise with genuine compassion. We understand the stress, fear, and even shame that can come with IRS problems. Our team strives not only to fix the problem but also to put your mind at ease throughout the process. You’ll have a direct line to professionals who truly understand tax law changes (even the latest tax law changes 2025 Congress is debating) and who sincerely care about helping you get your life back. We don’t see you as just another case number – we see you as a person who deserves relief and respect. And we fight hard to deliver that.

It’s Time to Level the Playing Field

Harvard isn’t worried about the IRS – why should you be? The scales might seem tipped in favor of the powerful, but with J. David Tax Law on your side, you can level the playing field. You deserve to have the same confidence and peace of mind about your taxes that Harvard has. The IRS might be intimidating, but it’s not invincible. With the right help, their threats can be defused, their tactics can be challenged, and their claims can be negotiated down.

In the end, it comes down to this: Harvard has billions and legal teams to keep the IRS at bay. You have J. David Tax Law. We are your billion-dollar defense (without the billion-dollar price tag). We give you the legal firepower and expertise that puts you on equal footing with the IRS, no matter how large or small your tax issue. Your peace of mind is a phone call away. Let’s fight the IRS together – and win.