fine. Commissioner EGGER. Mr. Chairman, I have a complete written statement, and I would like to sub record. The CHAIRMAN. Without objection. [The prepared statement follows:] IALLY DISCRIMINATORY PRIVATE SCHOOLS AND CHARITABLE CONTRIBUTIONS TO THEM. W. GIDEON, IRS CHIEF COUNSEL. ACCOMPANYING OLVEMENT IN THIS AREA BEGAN AFTER THE SUPREME COURT ■ V. BOARD OF EDUCATION AND BOLLING V. SHARPE1 SCRIMINATION IN PUBLIC EDUCATION TO BE OF EDUCATION, 347 U.S. 483 (1954); BOLLING V. D OF SUPERVISORS OF PRINCE EDWARD COUNTY, 4TH CIR. 1964); POINTDEXTER V. LOUISIANA FINANCE SSION, 273 F. SUPP. 833 (ED LA 1967), AFFD. PER 571 (1968); COFFEY AND UNITED STATES V. FINANCE ASSISTANCE COMMISSION, 296 F. ISS 1969) we procee WHOSE OPERATION WITH STATE AND LOCAL GOVERNMENT AID WAS UNCONSTITUTIONAL OR IN VIOLATION OF THE LAWS OF THE UNIT HOWEVER, RACIALLY DISCRIMINATORY SCHOOLS THAT OPERATED W STATE SUPPORT OR AID WOULD CONTINUE TO BE EXEMPT FROM FE INCOME TAX. IN 1969, THE SERVICE WAS SUED BY THE PARENTS OF BLA IN THE STATE OF MISSISSIPPI. THEIR ARGUMENT WAS THAT TH OF TAX EXEMPTION AND DEDUCTIBLE CONTRIBUTIONS TO A PRIVA DISCRIMINATORY SCHOOL AMOUNTED TO UNCONSTITUTIONAL GOVER ACTION. THEY ASSERTED THAT THESE SCHOOLS FAILED TO QUAL EXEMPTION BECAUSE THEIR PRACTICES VIOLATED CLEAR FEDERAL 3 IRS NEWS RELEASE DATED AUGUST 2, 1967 LOWING TAX EXEMPTIONS TO PRIVATE SCHOOLS THAT ATE NOR TREAT CONTRIBUTIONS TO SUCH SCHOOLS AS TO QUALIFY FOR SUCH BENEFITS, ALL PRIVATE RED TO ADOPT AND PUBLICLY ANNOUNCE A POLICY RIMINATION. THE THEN COMMISSIONER OF THE SERVICE INDICATED THAT THE LEGAL ASPECTS OF THIS CUSSED AND STUDIED IN GREAT DEPTH WITHIN BOTH TMENT AND THE DEPARTMENT OF JUSTICE AND THAT BOTH 7 N ACCORD WITH THE POSITION. THE WHITE HOUSE S RELEASE ENDORSING THIS POSITION. Y, 309 F. SUPP. 1127 (D.D.C. 1970) [PRELIMINARY , 26 AFTR 2D 70-5416 (n.n.C.) [REVISED UNCTION]; GREEN V. CONNALLY, 330 F. Supp. 1150 NENT INJUNCTION, AFF D SUB NOM. COIT V. GREEN, 971). ES JULY 10 AND 19, 1970 I THE SELECT COMMITTEE FOR FOUAL EDUCATIONAL CONCLUDING THAT RACIALLY DISCRIMINATORY PRIVATE SCHOOLS WERE NOT ELIGIBLE FOR TAX BENEFITS AVAILABLE TO CHARITIES, THE THREE-JUDGE COURT IN GREEN ENTERED THE PERMANENT INJUNCTION IN JUNE OF 1971. A CHALLENGE ON THE MERITS OF THE ORDER WAS MADE BY PARENTS SUPPORTING SCHOOLS WITH EXCLUSIVELY WHITE ENROLLMENTS. ON AN APPEAL BY THE WHITE PARENTS, THE UNITED STATES SUPREME COURT AFFIRMED PER CURIAM THE LOWER COURT.& IN 1970, THE SERVICE EXAMINED PRIVATE SCHOOLS IN MISSISSIPPI AND, APPLYING SIMILAR PROCEDURES SURVEYED 15,000 SCHOOLS NATIONWIDE. THESE ACTIONS RESULTED IN REVOCATION OF THE TAX EXEMPT STATUS OF OVER 100 SCHOOLS THAT WOULD NOT ADOPT AND PUBLICIZE A RACIALLY NONDISCRIMINATORY ADMISSIONS POLICY. INCLUDED AMONG THE SCHOOLS THAT REFUSED TO ADOPT SUCH A POLICY WAS ROB JONES UNIVERSITY. IT SHOULD BE NOTED THAT THE SERVICE GAVE EVERY PRIVATE SCHOOL WITH A RACIALLY DISCRIMINATORY POLICY AN OPPORTUNITY TO CHANGE THAT POLICY BEFORE IT TOOK ACTION. IN SINCE 1970, THE SERVICE HAS TAKEN A NUMBER OF ADDITIONAL STEPS TO IMPLEMENT THE RACIAL NONDISCRIMINATION REQUIREMENT. 1971, IRS PUBLISHED A RULING EXPLAINING THE NONDISCRIMINATORY Q REQUIREMENT, AND, IN 1972, THE SERVICE PUBLISHED A PROCEDURE THAT ESTABLISHED GUIDELINES FOR PUBLICIZING A SCHOOL'S RACIALLY NON10 DISCRIMINATORY POLICY. 8 COIT V. GREEN, 404 1.S. 997 (1971). THE SUPREME COURT IN ROB JONES UNIVERSITY V. SIMON, 416 U.S. 725, 740, FN. 11, STATED THAT THE GREEN AFFIRMANCE LACKS THE PRECEDENTIAL WEIGHT OF A REV. PUL. 71-447, 1971-2 C.B. 230 10 REV. PROC. 72-54, 1972-C.R. 834 |