Higher Education: IRS and Education Could Better Address Risks Associated with For-Profit College Conversions, Statement of Melissa Emrey-Arras, Director Education, Workforce, and Income Security, Testimony Before the Committee on Education and Labor, House of Representatives [open pdf - 1MB]
From the Highlights: "A for-profit college may convert to nonprofit status for a variety of reasons, such as wanting to align its status and mission. However, in some cases, former owners or other insiders could improperly benefit from the conversion, which is impermissible under the Internal Revenue Code and Higher Education Act of 1965, as amended. This statement--based on GAO's [Government Accountability Office] December 2020 report (GAO-21-89)-- discusses what is known about insider involvement in conversions and the extent to which IRS [Internal Revenue Service] and Education identify and respond to the risk of improper benefit. We also requested updates from IRS and Education officials on any agency actions taken to implement the December 2020 report recommendations."
Government Accountability Office: https://www.gao.gov/