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IRS and Treasury announcements released September 3, 2026.

What is actually happening

The Treasury Department and IRS have issued proposed regulations that would make a private school ineligible for federal 501(c)(3) tax-exempt status if it adopts, maintains, or enforces policies that discriminate based on race, color, or national/ethnic origin. This would cover admissions, scholarships, loans, athletics, facilities, and other school programs.

The proposal applies broadly to:

Private elementary and secondary schools
Colleges and universities
Medical, law and other professional schools
Trade schools

Treasury/IRS estimate that as many as 18,000 private educational institutions could be affected

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❣️A serious crime involving intentional deceit to lower or skip tax payments.
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Withholding Taxes Definition:
❣️Money taken right from your pay to cover your yearly tax bill.
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