IRS Proposes New Regulations Denying Tax-Exempt Status to Discriminatory Private Schools

The U.S. Department of the Treasury and IRS published Proposed Regulations that would codify the position that a private school cannot be tax-exempt under Section 501(c)(3) of the Internal Revenue Code if it discriminates on the basis of race, color, or national or ethnic origin. The proposal would apply to various private educational institutions and could affect as many as 18,000 schools.