Archive: UBI

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Underpayment Penalty Relief for Nonprofits Subject to New Qualified Transportation Fringe Tax

Internal Revenue Service (IRS) Notice 2018-100 offers transitional relief to nonprofits from underpayment penalties related to the new qualified transportation tax. The new tax is applicable to nonprofits that provide certain benefits to employees, effective on January 1, 2018. The general tax rules provide that taxpayers must make four quarterly estimated payments during the year […]

IRS Issues Notice Clarifying Trade or Businesses for UBI Purposes

The Internal Revenue Service (IRS) issued Notice 2018-67 on August 21, 2018, to an audience of nonprofit organizations and their advisors waiting on the edge of their seats for clarification of the new law passed last December. The agency revealed relatively good news for those nonprofits who have more than one source of unrelated business […]
September 19, 2018

UBI Activity Loophole for Schools

Schools often rent their facilities to a third party when they’re not in use or have excess space. They usually do this as a community service; for instance, renting the facility to a daycare provider or a summer school, or to produce additional income. School business managers and CFOs should know that this type of […]