Earlier this week, AccessLex Institute submitted a formal letter urging the IRS to withdraw its proposed rule impacting private school tax exemption (proposed regulations – REG-119986-25). From the letter:

The following comments reflect AccessLex Institute’s view that the proposed rule expands existing law beyond what Supreme Court precedent requires, and fails to adequately account for reliance interests, implementation challenges, and the practical consequences for nonprofit higher education.

The letter notes that: (1) the proposed rule expands and does not merely codify Bob Jones; (2) the proposed rule treats Students for Fair Admissions as resolving issues it never addressed; (3) the proposed rule raises serious major questions doctrine concerns; (4) the Treasury has failed to consider significant reliance interests; and (5) the rule is arbitrary and capricious because Treasury concedes it lacks key data. Read more on the AccessLex website.