Form 990-T and Unrelated Business Income
Author: Clark Nuber, Megan Ryan, Danielle Wright
| CPE Credit: |
2 hours for CPAs
2 hours Federal Tax Related for EAs and OTRPs
2 hours Federal Tax Law for CTEC |
Per the IRS Education Provider Standards this course must be COMPLETED by 12/31/2026 to receive credits. NOTE: Go to My Professional Profile in your CCH CPELink account settings to ensure your name, and PTIN number; matches your PTIN card
Nonprofit organizations are generally recognized as exempt from federal income taxes, with the exception of tax on unrelated business income. This course is designed to assist those working for nonprofit organizations as well as CPAs and others who consult with nonprofits to identify unrelated business activities and gain confidence in calculating unrelated business taxable income. We will cover the three primary principles of unrelated business income as well as exceptions to those principles. We will also discuss common examples of unrelated business income, siloing rules, and Form 990-T reporting.
Publication Date: August 2023
Topics Covered
- General Overview
- Criteria for Unrelated Business Income
- Separate Trade or Business Activities
- Advertising and Sponsorships
- Other Common Sources of UBI
- Form 990-T Reporting
Learning Objectives
- Identify the three principles of unrelated business income and apply those principles to activities commonly treated as unrelated
- Identify where exceptions or special rules exist to exclude an activity from unrelated business income
- Describe the siloing rules and the impact of those rules on Form 990-T reporting
- Identify revenue from sale of advertising subject to UBI
Level
Intermediate
Instructional Method
Self-Study
NASBA Field of Study
Taxes (2 hours)
Program Prerequisites
Basic understanding of unrelated business income and Form 990-T Reporting Requirements
Advance Preparation
None
