Jump directly to the content

Updated IRS Reporting Requirement Applies to Church Preschools

Publicizing racial nondiscrimination policy can now also be fulfilled through a website statement.

Updated IRS Reporting Requirement Applies to Church Preschools

The Internal Revenue Service (IRS), through new guidance issued in May, has added another way for private schools to publicize their racially nondiscriminatory policy to the general community. In IRS Revenue Procedure 2019-22 (2019), the agency says a website statement is now a suitable method for providing such a public statement.

This development should be noted by all privately run schools and preschools, including ones operated, supervised, or controlled by churches and other religious organizations.

Background

Each year, a private school must file a certificate of racial nondiscrimination (IRS Form 5578) with the IRS, and maintain supporting records documenting compliance with the policy, in order to retain its tax-exempt status. The certificate is due by the fifteenth day of the fifth month following the end of the organization’s fiscal year. This is May 15 of the following year ...

Log In For Full Access

Interested in becoming a member? Learn more.

Richard R. Hammar is an attorney, CPA and author specializing in legal and tax issues for churches and clergy.

Related Topics:
Posted:
  • June 26, 2019

Related ResourcesView All

20 Finance Questions Churches Ask
20 Finance Questions Churches Ask
Richard Hammar answers relevant tax and finance questions for church leaders.
Protecting Your Tax-Exempt Status
Protecting Your Tax-Exempt Status
Understand the requirements of your tax-exempt status.