Definition & Meaning
The 2018 Schedule E (Form 990 or 990-EZ) is a supplemental form required by the IRS for organizations that classify as private schools. This document helps ensure these schools comply with federal racially nondiscriminatory policies. The form includes critical questions about the school's admissions processes, public communication of their nondiscrimination policies, and the maintenance of records to confirm compliance.
How to Use the 2018 Schedule E (Form 990 or 990-EZ)
To properly use the 2018 Schedule E, schools must carefully fill out each section to demonstrate adherence to IRS nondiscriminatory standards. This involves accurately reporting admissions procedures and public communication efforts regarding nondiscrimination. It's vital for schools to provide truthful and complete information, as inaccuracies may result in penalties or loss of tax-exempt status.
Steps to Complete the 2018 Schedule E (Form 990 or 990-EZ)
- Gather Information: Collect all necessary details regarding your school’s admissions policies, nondiscrimination statements, and evidence of compliance.
- Complete Section I: Provide details on the nondiscrimination policy as published in solicitations for students. Indicate where and how this policy is publicly accessible.
- Fill Section II: Respond to questions about public inspections, ensuring that disclosures describing racial nondiscrimination are available for public information.
- Answer Certification Questions: Verify compliance by reviewing and certifying that your policies and practices do not discriminate in a manner inconsistent with your public statements.
- Review for Accuracy: Double-check all entries for completeness and correctness before submission.
Who Typically Uses the 2018 Schedule E (Form 990 or 990-EZ)
This form is primarily used by private educational institutions in the United States that are seeking to maintain their tax-exempt status. To qualify, these schools must show compliance with nondiscriminatory admission policies towards students.
Key Elements of the 2018 Schedule E (Form 990 or 990-EZ)
- Admissions Policies: Document admissions criteria and procedures ensuring they uphold nondiscriminatory standards.
- Public Communication: Ensure that nondiscrimination policies are communicated publicly and accurately.
- Certification of Compliance: Confirm adherence to applicable nondiscriminatory laws and provide appropriate certification.
- Recordkeeping Requirements: Maintain adequate records verifying compliance with nondiscriminatory admissions policies.
Legal Use of the 2018 Schedule E (Form 990 or 990-EZ)
Schools must legally use the 2018 Schedule E to maintain alignment with IRS regulations regarding tax exemption. Failure to comply with these regulations can lead to penalties, including potential revocation of tax-exempt status. The form’s content provides legal evidence supporting a school's claim to meet nondiscriminatory obligations.
IRS Guidelines
The IRS provides clear guidelines on completing and submitting Schedule E. These guidelines include detailed instructions to ensure every section accurately reflects the school's policies and procedures. It is crucial for schools to adhere to these guidelines strictly to avoid discrepancies, which can lead to investigations or penalties.
Filing Deadlines / Important Dates
Organizations must submit the Schedule E together with Form 990 or 990-EZ by the 15th day of the 5th month following the end of the organization's accounting period. For the calendar year, the typical deadline is May 15. Schools should plan ahead to ensure all relevant information is gathered well before this date to avoid late submission penalties.
Required Documents
Schools need supporting documents to complete Schedule E, including:
- Admissions policies
- Published nondiscrimination statements
- Proof of public communication
- Records of compliance activities
These documents help provide a thorough and verifiable description of the institution’s adherence to nondiscriminatory policies.
