Printable Form 2026

IRS Form 990 or 990-EZ (Schedule E)

IRS Form 990 or 990-EZ (Schedule E) – Private schools recognized as tax-exempt under Section 501(c)(3) must maintain and publicize a racially nondiscriminatory policy toward students to preserve their exempt status. The IRS uses Schedule E (Form 990 or 990-EZ) — officially titled “Schools” — to collect annual certification and supporting details from qualifying organizations. This guide explains who must file, what the form requires, how to comply with Revenue Procedure 75-50 (as modified by Rev. Proc. 2019-22), recordkeeping rules, and practical tips for seamless filing.

What Is Schedule E (Form 990 or 990-EZ)?

Schedule E reports information about a private school’s racially nondiscriminatory policies and operations. Organizations attach it to Form 990 or Form 990-EZ when they answer “Yes” on the trigger line for schools. The form focuses on compliance with IRS guidelines that private schools must follow to qualify for — and retain — tax-exempt status.

The current version (Rev. December 2024) is now continuous-use, so the same form and instructions apply for tax year 2024 and all future years until a new revision appears.

Who Must File Schedule E?

File Schedule E if both conditions are met:

  • The organization is a school (it checked the box on Schedule A (Form 990), Part I, line 2).
  • It answered “Yes” on Form 990, Part IV, line 13 or Form 990-EZ, Part VI, line 48.

Note for church-affiliated or other schools exempt from filing Form 990
These organizations generally use Form 5578 (Annual Certification of Racial Nondiscrimination for a Private School Exempt From Federal Income Tax) instead of Schedule E.

Why the IRS Requires This Information?

Since Revenue Procedure 75-50 (1975), the IRS has required private schools to adopt, publicize, and operate under a racially nondiscriminatory policy as a condition of 501(c)(3) status. Rev. Proc. 2019-22 (effective 2019) added a modern third publicity option: a prominent notice on the school’s primary publicly accessible homepage. Failure to comply can create a presumption of discrimination and risk revocation of tax-exempt status.

Step-by-Step Guide to Completing Schedule E – Part I

Line 1
Does the organization have a racially nondiscriminatory policy in its charter, bylaws, other governing instrument, or a resolution of its governing body?
→ Section 4.01 of Rev. Proc. 75-50. The policy must explicitly state that the school does not discriminate on the basis of race, color, or national or ethnic origin.

Line 2
Does the organization include the policy statement in all brochures, catalogues, and other written communications dealing with student admissions, programs, and scholarships?
→ Section 4.02. A short reference is also required in other advertising: “The [Name] School admits students of any race, color, and national or ethnic origin.”

Line 3 (Publicity requirement – the most frequently scrutinized)
Has the school publicized its policy using one of the three IRS-approved methods during the tax year?
The three methods (Section 4.03 as modified):

  1. Newspaper — Publish the full IRS sample notice at least once annually in a newspaper of general circulation serving all racial segments of the community (minimum 3 column inches, specific type sizes).
  2. Broadcast media — Use radio or television with documentation that the message reached all segments of the served community.
  3. Website (added 2019) — Display the full notice on the school’s primary publicly accessible homepage at all times during the tax year (excluding brief technical outages) in a manner “reasonably expected to be noticed” (size, color, placement, no extra clicks required).

If “Yes,” describe the method(s) used. If “No,” explain. Certain exceptions apply for parochial schools or schools serving wide geographic areas (Section 4.03.2).

Sample IRS Notice of Nondiscriminatory Policy (use this exact or substantially similar wording)
“Notice of Nondiscriminatory Policy as to Students
The [Name] School admits students of any race, color, national and ethnic origin to all the rights, privileges, programs, and activities generally accorded or made available to students at the school. It does not discriminate on the basis of race, color, national and ethnic origin in administration of its educational policies, admissions policies, scholarship and loan programs, and athletic and other school-administered programs.”

Line 4 – Recordkeeping (Yes/No for each)
a. Records of racial composition of student body, faculty, and administrative staff
b. Records showing scholarships and financial aid awarded on a racially nondiscriminatory basis
c. Copies of all catalogues, brochures, announcements, etc.
d. Copies of all contribution-solicitation materials

If “No” to any, explain in Part II.

Line 5 – No discrimination in any area
Answer “No” to all eight subparts (students’ rights, admissions, faculty employment, scholarships, educational policies, facilities, athletics, extracurricular activities). Any “Yes” requires a full explanation.

Line 6 – Governmental financial aid
a. Did the school receive any government aid?
b. Has any aid ever been revoked or suspended?
Explain any “Yes” answers.

Line 7 – Certification
Does the organization certify compliance with sections 4.01–4.05 of Rev. Proc. 75-50 (as modified)?
This is signed under penalties of perjury by an authorized officer.

Part II – Supplemental Information

Use this section (or duplicate pages) for all required explanations (lines 3, 4d, 5h, 6b, 7) and any additional details. Clearly label each response by line number.

Recordkeeping Requirements (Section 7 of Rev. Proc. 75-50)

Schools must retain the following records for at least 3 years (beginning the year after compilation):

  • Racial composition data (estimates are allowed if based on best available information)
  • Scholarship/financial-aid award documentation
  • All printed advertising and brochures
  • Contribution solicitation materials

Records already filed with a government agency within the past year do not need duplicate maintenance if copies are kept. Failure to produce records on audit creates a presumption of noncompliance.

Common Compliance Pitfalls & Best Practices

  • Website publicity — The notice must be visible without scrolling or clicking; links or pop-ups do not qualify.
  • Annual newspaper ad — One publication per year is enough, but timing must align with solicitation or registration periods.
  • Board resolution — Keep a dated copy of the governing-body resolution adopting the policy.
  • Minority-enrollment exceptions — Document why an exception applies and be prepared to show meaningful minority enrollment or recruitment efforts.
  • Church schools — File Form 5578 by the 15th day of the 5th month after year-end if you do not file Form 990.

Where to Download the Latest Forms & Instructions (as of February 2026)?

Always check IRS.gov/Form990 for the most current versions and any future developments.

Bottom Line

Completing Schedule E (or Form 5578) is a straightforward but critical annual requirement. By adopting the required policy, publicizing it through an approved method, maintaining proper records, and certifying compliance each year, tax-exempt private schools protect their 501(c)(3) status and demonstrate their commitment to equal educational opportunity.

For personalized guidance, consult your tax advisor or attorney familiar with exempt-organization rules. The IRS instructions and Revenue Procedures remain the definitive sources—use them as your primary reference when preparing the return.