September 11, 2018

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AASA Call-to-Action: Tell the IRS to Close School Voucher Program Tax Shelter

For many years the IRS has permitted taxpayers in 12 states to turn a profit by financially supporting private school voucher programs. This profitable tax shelter has fueled rapid growth in these voucher programs, leading to a major transfer of public dollars into private schools. Moreover, the profits being pocketed by these taxpayers come at the expense of state and federal budgets and do not find their way into any public school or public works project.

 The profiteering facilitated by these tax credit vouchers schemes is neither accidental nor incidental. Tax accountants, private schools, and others in many states with tax credit voucher programs have long marketed these programs as tools for exploiting the federal charitable deduction.

Given the Trump Administration’s love of vouchers, we were quite surprised that the IRS has proposed regulations that would shut down this tax shelter and could significantly weaken the popularity and growth of the voucher programs in these 12 states. We have an opportunity as public education advocates to weigh in with the IRS and support these regulations, but the IRS is already facing extreme pressure by pro-privatization entities and members of Congress to keep them on the books.

Please take 5 minutes to fill out this template and send it to the IRS today. This is an opportunity to send more dollars into public schools both at the federal and state level.

How to File Comments with the IRS

Comments are due by October 11, 2018

  • Draft your response comments. You can create your own comments or work from AASA’s template. Format your response as a Word/PDF document (include district letter head!).
  • Go to
  • In the ‘Comment” box, type the phrase “I submit the attached comment in response to the IRS proposed regulations on Contributions in Exchange for State and Local Tax Credits.
  • Below the comment box:
    • Upload your file.
    • Enter your first and last name.
    • Click ‘continue’
  • Review the information on this page, including a check to ensure your document is attached.
  • Click the ‘I have read and understand’ item.
  • Click ‘Submit Comment’

Note: If it’s too complicated to use the web form, please email your comments to Sasha at and she will submit them on your behalf.