Wednesday July 9, 2025

Private Letter Ruling

Religious School Exempt From Filing Form 990

GiftLaw Note:
Organization is a nonprofit educational organization described in section 501(c)(3) and classified as a public charity under sections 509(a)(1) and 170(b)(1)(A)(ii). Organization operates a general academic program below college level and is affiliated with a church within the meaning of Treasury Regulation section 1.6033-2(h)(2). Organization has requested an exemption from the requirement to file Form 990, Return of Organization Exempt from Income Tax.

Under Treasury Regulation section 1.6033-2(g)(1)(vii), educational organizations below college level that are affiliated with a church or operated by a religious order are not required to file Form 990. Based on the information provided, the Service determined that Organization qualifies for this exemption. However, as a private school, Organization remains subject to the annual certification of racial nondiscrimination requirements under Revenue Procedure 75-50. Organization must file Form 5578, Annual Certificate of Racial Nondiscrimination for a Private School Exempt from Federal Income Tax, annually to comply. Organization’s exemption from the Form 990 filing requirement does not affect its obligations as a tax-exempt organization under section 501(c)(3) to file Form 5578. Therefore, the Service granted Organization’s request to be exempt from the requirement to file Form 990.

PLR 20256015 Religious School Exempt From Filing Form 990

6/27/25 (4/2/25)

Dear * * *:

Why you're receiving this letter

This is in response to your July 25, 2024 request to be exempt from the requirement to file Form 990, Return of Organization Exempt from Income Tax.

Treasury Regulation Section 1.6033-2(g)(1)(vii) provides that an educational organization (below college level) described in Internal Revenue Code (IRC) Section 170(b)(1)(A)(ii) with a program of general academic nature and is affiliated with a church, or operated by a religious order, isn't required to file Form 990. Treas. Reg. Section 1.6033-2(h)(2) clarifies what it means to be affiliated with a church. Based on the information you provided, we determined you qualify for classification as one of these educational organizations. Therefore, in accordance with Treas. Reg. Section 1.6033-2(g)(1)(vii), you're not required to file Form 990. We'll update our records accordingly.

However, be aware that Section 4.06 of Revenue Procedure 75-50 requires private schools provide us with annual certification of racial nondiscrimination. This is normally done on Form 990 (Schedule E), Schools. If you don't file Form 990, you must complete Form 5578, Annual Certificate of Racial Nondiscrimination for a Private School Exempt from Federal Income Tax, annually to certify you're complying with Rev. Proc. 75-50.

What you need to know

As an organization exempt from federal income tax under IRC Section 501(c)(3), you must fulfill other requirements. You can find helpful information about your responsibilities as tax exempt organization in Publication 4221-PC, Compliance Guide for 501(c)(3) Public Charities.

Additional information

We'll make this determination letter available for public inspection after making deletions as required by IRC Section 6110, such as the names, addresses, and other identifying details.,. We've enclosed Letter 437, Notice of Intention to Disclose Rulings, and a copy of the letter that shows our proposed deletions.