Proposed IRS Rule Targets Tax-Exempt Status for Private Schools Discriminating on Basis of Race, Color, or National Origin

The Internal Revenue Service (IRS) and the U.S. Department of the Treasury have published proposed regulations that would disallow tax-exempt status for any private school that discriminates on the basis of race, color, or national or ethnic origin in its educational, admissions, scholarship, or other school-administered programs. This proposed rule would impose a year-by-year nondiscrimination test for taxable years beginning after May 31, 2027.