WASHINGTON - The tax-exempt bond financings of nonprofit colleges and universities would be subject to much greater scrutiny under new audit guidelines that have been proposed by the Internal Revenue Service.

The proposed guidelines, which the IRS issued Monday in Announcement 93-2. are designed to ensure that 501(c)(3) colleges and universities are not providing undue benefits to private individuals or entities that would undermine the tax-exempt status of these institutions and their bonds, an IRS official said in an interview yesterday.

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