Unrelated Business Income Tax

The recent activity in the charitable sector by federal and state regulatory agencies has mandated that professionals take a proactive approach into all aspects of this important and very diverse sector. The tax-exempt community is under a microscope.

Recent IRS compliance initiatives in governance, transparency, abusive tax avoidance transactions, executive compensation, tax-exempt hospitals and community benefit, and the current ongoing initiative involving colleges and universities, have securely placed the spotlight on this sector.

The Internal Revenue Service has become more sophisticated and active in the arena of unrelated business income tax. The result of noncompliance can be disastrous in terms of revenue and reputational loss to the organization. The IRS has the ability to assess penalties, sanctions and even revoke the nonprofit status of the organization. State and local regulators have followed the federal lead due to budget constraints and have looked to the not-for-profit sector for alternative revenue sources by disallowing or restricting exemptions such sales and real estate taxes.

This live webinar will provide you with an update on certain key focus areas of the IRS and the implications of the IRS's recently issued Compliance Project Final Report. While the report focused on colleges and universities, the findings will have further reaching impact on all exempt organizations. This webinar will enable you to address some of the old and new issues that currently face the sector in the area of unrelated business income tax, and will explain some of the nuances of what constitutes UBIT and what is mission or exempt revenue. How do organizations' recognize the potential pitfalls or take advantage of new or specifically tax exempted alternative revenue sources?

Learning Objectives

- You will be able to discuss tax rates, tax forms and organizations subject to UBIT.

- You will be able to review what income is subject to UBIT.

- You will be able to explain acknowledgments or sponsorship vs. advertising.

- You will be able to discuss colleges and universities project final report.