The Internal Revenue Service began an investigation of the University last year in connection with its rental of over 22 single-family homes in Cambridge to faculty tenants. At least eight of the tenants, The Crimson reported at the time, paid Harvard less than market value in rent on their homes. The advantage such tenants enjoyed is called a "rent subsidy," and as far as the IRS codes are concerned, it's taxable income.
The IRS had to decide whether tenants are getting rent subsidies, and whether the tenants and Harvard were reporting them for tax purposes. Now, a year later, the investigation is still underway, and the IRS has no estimate of when it will be over. Meanwhile, Daniel Steiner '54, general counsel to the University, says he has neither talked with the IRS nor changed the University's practice regarding rent subsidies since the investigation began. The IRS isn't talking.
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