Unrelated Business Income Tax (UBIT) Case Studies: Not-for-Profit Tax Compliance

Overview

This video-based CPE course is included in Not-for-Profit Certificate II. It can be purchased individually or as a part of the Not-for-Profit Certificate II - Tax Compliance track.

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.

Highlights

Key Topics

• 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

Prerequisites

Experience working in or with the not-for profit industry

Objectives

Learning Outcomes

• 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