Archive: UBIT

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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 […]

Where Do My Tax Dollars Go? – There’s an App for That!

On the heels of tax season, you may be wondering where your tax dollars are going. The White House launched an online tool that lets people see just that. As mentioned in the Hill blog, the White House’s Federal Tax Receipt tool allows taxpayers to enter their tax information and in return provides a breakdown of tax dollars […]

IRS Issues New Publication on Gaming: Tax-Exempt Organizations and Gaming

If your nonprofit organization is considering any gaming activities or is already engaged in gaming activities, there are some important things you need to be aware of for both reporting purposes and maintaining tax exempt status. Gaming is a way of raising funds, raising awareness for nonprofit programs, and for member groups to socialize.  Conducted […]

Do the church’s auxiliary activities create a tax liability?

It’s dangerous relying on the assumption that all sources of income are exempt from federal income tax. Churches need to know the IRS code and how it applies to the various revenue generating activities of the church.  For example, if a church sells coffee, is this income subject to federal income tax?  The answer is, […]

ADVERTISING OR SPONSORSHIP…THE DIFFERENCE CAN BE A LOT OF $$$

Advertising revenue is considered “unrelated business income” (UBI) by the Internal Revenue Code (IRC) Section 513.  But how do you know the revenue your organization is receiving is REALLY considered advertising?  This is where a closer look can save you big tax dollars! To make it simple, you have advertising revenue subject to the UBI […]