October 2010

Lowenthal Article, "How to Identify Taxable Income (UBTI)", Published in Association News

Not even the tax-exempt can escape income taxes. If your organization has income derived from activities that are not substantially related to your organization’s exempt purpose or function, you may be vulnerable.

Commonly referred to as Unrelated Business Taxable Income (UBTI), the process of complying in various taxing jurisdictions can be painful and overwhelming. But as the head of a tax-exempt organization (i.e president, trustee, etc.), you generally have full responsibility for your organization’s investments of assets, so it is important to be in compliance and not be caught unaware of owing income tax.

David Lowenthal, Senior Tax Manager in Blackman Kallick’s Not-For-Profit Tax Practice, provides details on how to determine if your organization has UBTI, alerts you to any penalties involved and ways to minimize any exposure, and explains the compliance process.

Read David's article "How to Identify Your Association's Taxable Income" in the October 2010 issue of Association News.

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This publication is part of Blackman Kallick’s marketing of professional services, and is not written tax advice directed at the specific facts and circumstances of any person and/or entity. Contents of this publication are of a general nature, and you should not act on this information without obtaining professional advice from your business advisor that is appropriately tailored to your individual needs and circumstances. This written advice is not intended or written to be used, and cannot be used by any taxpayer, for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code.