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CPE Self-Study

Unrelated Business Income Tax (UBIT) Case Studies: Not-for-Profit Tax Compliance

  • $69.00-$89.00
    Unrelated Business Income Tax (UBIT) Case Studies: Not-for-Profit Tax Compliance Availability : Online Access Product #: 165413
    AICPA Member: $69.00
    Non-Member: $89.00
  • Contact Sales
    Contact a representative for group pricing. 800.634.6780 (Option 1) | Contact Us Product #: GT-NFP2-TAX3

This video-based CPE course is included in Not-for-Profit Certificate II. It can be purchased individually or as a part of the Not-for-Profit Certificate II - Tax Compliance track.

The reporting of unrelated business income has become increasingly significant in the not-for-profit sector after an IRS study found that many not-for-profit organizations are under-reporting their tax liabilities. Recent IRS audits have increased their scrutiny in this area.

In this CPE course, you will get an understanding of what constitutes unrelated business income. You will consider real-world examples and examine tax court findings and IRS rulings to learn how to deal with some common UBI-generating activities. Also discussed are commonly applied exceptions and exclusions to UBI that can reduce an organization’s tax liability, as well as potential red flags that should be avoided.

Topics Discussed

  • Overview of unrelated business income
  • Commerciality doctrine
  • Exclusions and exceptions
  • Activities that result in tax liability
  • IRS audit activity
  • Completion of IRS Form 990-T Exempt Organization Business Income Tax Return

Learning Objectives

  • Recognize typical unrelated business activities conducted by exempt organizations
  • Differentiate between the more common unrelated business income (UBI) exclusions and exceptions and determine when they are most likely to apply based on a fact pattern
  • Recognize steps to prepare IRS Form 990-T Exempt Organization Business Income Tax Return
  • Analyze a scenario and calculate UBI

Prerequisite: Knowledge of not-for-profit sector and basic tax compliance requirements of exempt organizations

Advance Preparation: None

Not-for-Profit Section Members Receive Additional Savings!

When you log into this website with your AICPA member user account, the section/credential discount will be automatically applied during checkout. Should you have any questions or encounter any issues, please contact the AICPA Service Center at 888-777-7077 or service@aicpa.org.

Find out more information on the NFP Section.

System Requirements

About the Authors

Brian Yacker, CPA/JD

Huntington Beach, CA

Brian has over 22 years of tax, legal, and accounting experience in the exempt organizations area. Areas of exempt organization consultation which Brian possesses expertise include public support test calculations and planning, preparation of reasonable compensation rebuttable presumption binders and Reasonable Compensation Studies, governance best practices consultation, recommendations regarding effective Bylaws, conducting of EO Governance Check-Ups, compliance with the 501(h) lobbying safe harbor, proper functional expense allocations, maximizing charity watchdog ratings, preparation of federal and state Tax Exemption Applications, conducting of unrelated business income revenue stream studies, preparing state charitable solicitation registrations and the proper internal and external reporting of special event fundraisers.

Brian is currently an adjunct professor for the University of California Irvine, teaching the Nonprofit Accounting course in the Master of Professional Accountancy program. Additionally, Brian serves on the Board of Directors for the Long Beach Nonprofit Partnership (for which he is the Treasurer). Finally, Brian serves on the AICPA EO Tax Technical Resource Panel and the AICPA Nonprofit Advisory Committee.

Brian earned his Bachelors degree in Finance/Marketing from the University of Virginia and his Juris Doctor from the Indiana University School of Law (Bloomington). Personal interests include hiking and camping, sports memorabilia collecting, playing fantasy sports, Asian cooking, and spending time with his wife, two daughters and son.

About the Publisher

American Institute of CPAs

The American Institute of CPAs (AICPA) is the world’s largest member association representing the CPA profession, with more than 418,000 members in 143 countries, and a history of serving the public interest since 1887. AICPA members represent many areas of practice, including business and industry, public practice, government, education and consulting.

The AICPA sets ethical standards for the profession and U.S. auditing standards for private companies, nonprofit organizations, federal, state and local governments. It develops and grades the Uniform CPA Examination, and offers specialized credentials for qualified professionals who concentrate on personal financial planning; forensic accounting; business valuation; and information management and technology assurance. With The Chartered Institute of Management Accountants (CIMA), it offers the Chartered Global Management Accountant (CGMA) designation, which sets the global benchmark for quality and recognition in management accounting.

The AICPA and CIMA also make up the Association of International Certified Professional Accountants (the Association), which represents public and management accounting globally, advocating on behalf the public interest and advancing the quality, competency and employability of CPAs, CGMAs and other accounting and finance professionals worldwide.

The AICPA maintains offices in New York, Washington, DC, Durham, NC, and Ewing, NJ.