IRS eyes stripping tax exemptions from colleges over race-based admissions

The IRS released proposed regulations to revoke the tax-exempt status of colleges and other schools that use race-based admissions or preferences, potentially affecting up to 18,000 institutions and about 750,000 scholarships. The rules would apply to admissions, scholarships and loans, with a 60-day public comment period and could take effect for taxable years beginning after May 31, 2027. Religious schools would still be allowed to consider students based on genuine religious affiliation.