Form 990 Schedule E

Introduction

Schedule E, is generally filed by organizations to report information on private schools.

If you're a tax-exempt or non-profit organization looking for comprehensive information on Schedule E, you've come to the right place. In this resource guide, we will explain the purpose of Schedule E and address common queries to provide clarity and guidance for 990 and 990-EZ filers.

What is Schedule E?

Schedule E, Schools is a supplementary schedule filed annually by school organizations along with their Form 990 or Form 990-EZ return to report additional information and meet their nonprofit tax filing requirements completely.

Who must file Schedule E?

Organizations that are organized and operate as Private Schools described in section 170(b)(1)(A)(ii) are required to attach Schedule E along with their Form 990/990-EZ information return.

Schedule E Filing Requirements

All non-profits and exempt organizations i.e., schools that file Form 990/990-EZ must complete and attach Schedule E.

Below, we have provided Schedule E filing requirements for each part.

Part I

Line 1

Answer “Yes” if your organization has clearly written down and officially approved a policy that students are accepted and treated equally, without discrimination based on race. This statement should be included in your governing documents, such as your charter, bylaws, or a resolution approved by your board.

Line 2

Answer "Yes" if you actually share that policy with the public. It needs to be easy to find in your brochures, admissions info, or scholarship announcements. In short: the policy needs to exist on paper and be visible to everyone you serve.

Line 3

• Answer “Yes” if your organization has clearly made its racially nondiscriminatory policy visible to the public during the year.
• This can be done by displaying the notice on your publicly accessible website homepage, publishing it in newspapers, or sharing it through broadcast media during student admissions or registration periods, so the community is aware that the school treats all students equally.
• If you select “Yes,” briefly explain how the policy was shared. If “No,” explain why it wasn’t publicized. Use Part II if you need extra space.

Line 4

These questions ask whether your organization keeps proper records to show that it follows fair and nondiscriminatory practices.

Line 4a

Answer “Yes” if you keep records showing the racial makeup of your students, faculty, and administrative staff.

Line 4b

Answer “Yes” if you maintain documents showing that scholarships or financial assistance are awarded fairly, without discrimination based on race.

Line 4c

Answer “Yes” if you keep copies of brochures, catalogs, announcements, or other written materials shared with the public about admissions, programs, or scholarships.

Line 4d

Answer “Yes” if you keep copies of all fundraising or donation request materials used by your organization or prepared on its behalf. If you answer “No” to any question, briefly explain the reason. Use Part II if more space is needed.

Line 5

This line asks if your school treats anyone unfairly based on race in any part of its operations. Go through each item and answer “Yes” only if there is a problem; otherwise, answer “No.”

Line 5a

Answer “No” if all students receive the same rights, services, and opportunities, and race does not affect how they participate or benefit from school activities. Select “Yes” only if race changes or limits the privileges given to any student.

Line 5b

Answer “No” if your school accepts students fairly and gives everyone an equal chance, no matter their race. Answer “Yes” only if a student race is taken into account when deciding who is accepted for admission.

Line 5c

Answer “No” if hiring, promotions, and other employment decisions for faculty and administrative staff are handled fairly and without regard to race. Select “Yes” only if race affects employment decisions.

Line 5d

Answer “No” if all scholarships, grants, and other financial support are offered fairly to every student, regardless of race. Answer “Yes” only if race affects who receives financial assistance.

Line 5e

Review whether academic programs, classroom rules, and learning opportunities are applied equally to all students.

Line 5f

Consider whether school spaces and resources are available to students equally, without racial preference or restriction.

Line 5g

Confirm that sports teams and athletic opportunities are open to all students on the same terms.

Line 5h

Answer “No” if all students can take part in clubs, events, and other non-academic activities equally, without regard to race. Answer “Yes” only if race affects who can participate or receive these opportunities. If you answer “Yes” to any question, briefly explain the situation in Part II.

Line 6a

Answer “Yes” if your organization receives any grants, funding, or other financial support from a government agency. Select “No” if it does not.

Line 6b

State whether your organization’s eligibility to receive this type of government assistance has ever been revoked or suspended. If you answer “Yes” to either question, provide a brief explanation in Part II.

Line 7

This question asks the organization to confirm that it has followed the racial nondiscrimination requirements outlined in the applicable procedures issued by the Internal Revenue Service (IRS). Answer “Yes” if your organization meets these requirements. If you select “No,” explain the reason in Part II

Part II - Supplemental Information

Use Part II to provide extra details or explanations when more information is needed for certain answers in Part I, such as lines 3, 4d, 5h, 6b, and 7. You may also use this section to clarify or add more information to any other response on Schedule E.

For each explanation, clearly mention the Part and Line number, and list them in the same order as they appear on the form. Add extra pages if you need more space. Use Part II to give additional explanations or details when required for certain answers in Part I, including lines 3, 4d, 5h, 6b, and 7. You may also use this section to clarify or add more information to any other response on Schedule E.

Choose TaxZerone to complete your Schedule E filing

As an esteemed IRS-authorized e-file service provider, we at TaxZerone promise more than just updates – we promise instant insights into your annual information return filing status, putting you in control at every turn.

At TaxZerone, it's not just about filing; it's about a seamless e-filing experience crafted just for you!

Here's how your Form 990/990-EZ return with Schedule E attachment is transmitted to the IRS in 3 simple steps!

1. Provide Organization Details -Choose the tax year for which you want to file a return, and provide your organization's details.
2. Preview the Return - Complete Schedule E and preview the information provided in the return for accuracy before transmitting.
3. Transmit to the IRS - Transmit Schedule E along with your 990/990-EZ return to the IRS and get the acceptance in just a few hours.

Even if the IRS rejects your exempt return due to any reason, you can correct and retransmit it to the IRS for FREE!With TaxZerone, you're not alone – we're your partners in success.