IRS and Treasury Propose New Nondiscrimination Rules for Tax-Exempt Private Schools

The U.S. Treasury and IRS have proposed new regulations to codify that private schools cannot maintain tax-exempt status if they discriminate based on race, color, or national/ethnic origin. These rules, potentially affecting up to 18,000 institutions, would also treat all race-conscious admissions or scholarship programs as prohibited discrimination, significantly impacting private education.