Any surplus remaining in a House committee bank account at the end of the year must be turned over to the University, in accordance with a new ruling which will take effect this June, it was reliably reported last night.
Reason for the new ruling, it was explained, was that the federal tax inspectors have begun to take an unusual interest in the House dances, and were prepared to levy taxes on the income from the parties unless it could be shown that any profit made on the dances was turned over to the university to be used "for educational purposes."
The money turned over by the House Committees to the University will be held at Lehman Hall, and the House may spend it, again "for educational purposes," only, but apparently dances are not in this category. Such things as magazines for the common room, phonograph records, books for the libraries and the like are acceptable, however.
All dance committee chairmen must now make out a tax exemption blank before each dance and file it with the Department of Internal Revenue. The exemption is granted because any profit made is to be turned over to "an educational institution," namely, Harvard University.