The reporting of unrelated business income has become increasingly significant in the not-for-profit sector after an IRS study found that many not-for-profit organizations are under-reporting their tax liabilities. Recent IRS audits have increased their scrutiny in this area.
In this CPE course, you will get an understanding of what constitutes unrelated business income. You will consider real-world examples and examine tax court findings and IRS rulings to learn how to deal with some common UBI-generating activities. Also discussed are commonly applied exceptions and exclusions to UBI that can reduce an organization’s tax liability, as well as potential red flags that should be avoided.
- When you complete this course, you will be able to:
- Recognize typical unrelated business activities conducted by exempt organizations
- Differentiate between the more common unrelated business income (UBI) exclusions and exceptions and determine when they are most likely to apply based on a fact pattern * Recognize steps to prepare IRS Form 990-T Exempt Organization Business Income Tax Return * Analyze a scenario and calculate UBI
- Recognize steps to prepare IRS Form 990-T Exempt Organization Business Income Tax Return
- Analyze a scenario and calculate UBI
- Overview of unrelated business income
- Commerciality doctrine
- Exclusions and exceptions
- Activities that result in tax liability
- IRS audit activity
- Completion of IRS Form 990-T Exempt Organization Business Income Tax Return
Professional Area of Focus
Who Should Attend
CPAs, financial professionals and NFP staff and board members looking to deepen their existing knowledge of NFP financial responsibility, and set themselves apart as a leader in this field.
Knowledge of not-for-profit sector and basic tax compliance requirements of exempt organizations.
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Unrelated Business Income Tax (UBIT) Case Studies: Not-for-Profit Tax Compliance