Virtual Nonprofit Series: Form 990-T - Exploring the Good, the Bad and the Ugly of Unrelated Business Income Taxation

Overview

Stay current with critical nonprofit tax compliance updates in this must-attend session led by Eve Borenstein, nationally recognized as the “Queen of the 990.” Since the Tax Cuts and Jobs Act of 2017, Form 990-T filing requirements have become significantly more complex. Nonprofits must now navigate the challenge of identifying and categorizing separate unrelated trades or businesses - an already difficult task made even harder by the need to determine whether an activity is subject to unrelated business income tax (UBIT) in the first place.

This session begins with a clear explanation of what constitutes an unrelated activity and when it triggers UBIT, including a review of statutory exclusions. From there, the seminar explores the more nuanced requirements for grouping unrelated activities - both by type and by relationship. Discover key considerations around income from partnerships, including categorization, investment income issues, and quirks in the regulatory guidance that apply to UBIT sub-sector rules.

Expect practical insights, tips for streamlining your compliance process, and reassurance that you’re not alone in navigating this challenging landscape.

Instructor: Eve Borenstein, Eve Rose Borenstein LLC

Highlights

Overview of unrelated business income tax (UBIT) and Form 990-T filing triggers

Statutory exclusions from UBIT

Post-TCJA rules for identifying and grouping separate trades or businesses

Partnership income considerations and categorization for UBIT

Investment income complications and reporting challenges

Practical insights from recent IRS guidance on UBIT

Compliance tips and workflow recommendations for nonprofit tax professionals

Prerequisites

Basic knowledge of nonprofit tax reporting, including familiarity with Form 990 and general unrelated business income tax (UBIT) concepts.

Designed For

CPAs and accounting professionals working in nonprofits or who have nonprofit organizations as clients, financial officers or board members of nonprofits.

Objectives

Identify which nonprofit activities are subject to unrelated business income tax (UBIT) and apply relevant statutory exclusions.

Analyze and properly group unrelated business activities in accordance with current IRS requirements.

Evaluate the implications of partnership income on Form 990-T filings, including handling of investment income.

Apply recent IRS guidance and regulations to real-world nonprofit scenarios involving UBIT.

Develop strategies to improve organizational compliance with complex Form 990-T reporting requirements.

Notice

All materials will be available to download in advance and participants will receive an email two days prior to the course date. Materials will also be posted in the “My CPE” section of the NESCPA website.