In No. Because of this admissions policy, the IRS revoked the University's tax-exempt status. After paying a portion of the federal unemployment taxes for a certain taxable year, the University filed a refund action in Federal District Court, and the Government counterclaimed for unpaid taxes for that and other taxable years. Holding that the IRS exceeded its powers in revoking the University's tax-exempt status and violated the University's rights under the Religion Clauses of the First Amendment , the District Court ordered the IRS to refund the taxes paid and rejected the counterclaim. The Court of Appeals reversed. After paying a portion of such taxes for certain years, Goldsboro filed a refund suit in Federal District Court, and the IRS counterclaimed for unpaid taxes. The Court of Appeals affirmed.

The move comes after widespread criticism of the policy in the wake of presidential candidate George W. Bush's campaign appearance at the school. Jones surprised students and supporters by announcing the policy change during an interview on CNN's "Larry King Live.

Bob Jones University v. United States , U. Because of its interpretation of Biblical principles regarding interracial dating, Bob Jones University completely excluded black applicants until , and from until , admitted black students only if they were married.