Rev. Rul. 71-447 and Rev. Proc. 75-50

were published in the Internal Revenue Bulletin and are available from the Superintendent of Documents, U.S. Government Publishing Office, Washington, DC 20402, or by visiting the IRS website at https://www.irs.gov .

Drafting Information

The principal author of these proposed regulations is the Office of Associate Chief Counsel (Employee Benefits, Exempt Organizations, and Employment Taxes). However, other personnel from the Treasury Department and the IRS participated in their development.

List of Subjects in 26 CFR Part 1

Income taxes, Reporting and recordkeeping requirements.

10 See Id .

September 21, 2026 448 Bulletin No. 2026–39

Proposed Amendments to the Regulations

Accordingly, the Treasury Department and the IRS propose to amend 26 CFR part 1 as follows:

PART 1—INCOME TAXES

Paragraph 1. The authority citation for 26 CFR part 1 continues to read, in part, as follows:

Authority : 26 U.S.C. 7805 * * *

• ---

Par. 2. Section 1.501(c)(3)-2 is added to read as follows:

§1.501(c)(3)-2 Racial nondiscrimination requirement for private schools.

(a) In general. A private school (as defined in paragraph (c) of this section) must be operated exclusively for one or more exempt purposes (as defined in §1.501(c)(3)-1(d)) to be an organization described in section 501(c)(3) of the

Internal Revenue Code (Code). A private school that fails to satisfy the nondiscrimination requirement of paragraph (b) of this section is not an organization described in section 501(c)(3) with respect to any taxable year of the private school described in paragraph (d) of this section.

(b) Nondiscrimination requirement . A private school is not operated exclusively for exempt purposes if it adopts, maintains, or enforces any policy or practice that discriminates on the basis of race, color, or national or ethnic origin in the administration of any educational policy, admissions policy, scholarship or loan program, athletic program, or other school-administered or school-supported program. For purposes of this section, discrimination on the basis of race, color, or national or ethnic origin includes any discrimination on the basis of race, color, or national or ethnic origin for any purpose.

(c) Private school defined . For purposes of this section, the term private school means an organization described in section 501(c)(3) (determined without regard to the nondiscrimination require

ment of paragraph (b) of this section) and classified as an educational organization described in section 170(b)(1)(A)(ii) of the Code. The term private school does not include a governmental unit, an agency or instrumentality of a governmental unit, or an organization that is owned or operated by an agency or instrumentality of a governmental unit. For purposes of this definition, the term governmental unit means the United States, a State, an Indian Tribal government (within the meaning of section 7701(a)(40) of the Code), the District of Columbia, a possession of the United States, or a political subdivision of any of the foregoing.

(d) Applicability date . This section applies with respect to the taxable year of any private school beginning after May 31, 2027.

Frank J. Bisignano, Chief Executive Officer .

(Filed by the Office of the Federal Register September 3, 2026, 8:45 a.m., and published in the issue of the Federal Register for September 4, 2026, 91 FR 56811)

Bulletin No. 2026–39 449 September 21, 2026