The Internal Revenue Service is finding that a number of colleges have failed to withhold proper amounts of tax from employees, evaded required payments of unrelated-business income tax, allowed students to avoid paying certain Social Security taxes, and allowed foreign students to avoid tax withholding on most income. (MSE)

The Internal Revenue Service has acknowledged that audits of graduate students receiving stipends were based on inconsistent interpretations of tax law but deny any policy to increase monitoring of graduate students' tax returns. (MSE)