Select a nonprofit organization in your community (New York City) or one that you are familiar with that conducts activities or generates revenue that you believe constitutes unrelated business income (UBI). Explain how the tax laws likely apply to this organization. Specifically: which activity of the organization is subject to UBIT? How is the activity taxed? What are some exceptions to UBIT taxation that may apply to this entity?
Chapters 23 & 26 in South-Western Federal Taxation 2019
Department of the Treasury. (2019). IRS organization and top officials. Retrieved from https://www.irs.gov/pub/newsroom/marketing/internet/irs_organization_chart.pdf
Exemption from Tax on Corporations, Certain Trusts, etc., 26 U.S. Code § 501
Unrelated Business Taxable Income, 26 U.S. Code § 512
Erdody, L. (2018). Not-for-profit organizations brace for impact of tax bill: Much-higher standard deduction may discourage philanthropy. Indianapolis Business Journal, 38(48), 1,30.
Murphy, M. (2016). Business practices that not-for-profits can't afford to overlook. Journal of Accountancy. Retrieved from https://www.journalofaccountancy.com/issues/2016/may/business-best-practices-not-for-profits.html
Unrelated business taxable income, 26 U.S. Code § 512(a) (n.d.). Retrieved from Thomson Reuters Checkpoint database.