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National Council of Nonprofits

Recent Posts by National Council of Nonprofits:

Government Issues Interim Rule and Request for Comments on Unrelated Business Income Taxes

The Treasury Department and Internal Revenue Service have issued a Request for Comments on proposed interim and transition rules (Notice 2018-67) for interpreting one of the two major changes to nonprofit unrelated business income tax (UBIT) included in federal tax law enacted last December. The new Section 512(a)(6) of the Internal Revenue Code changes the way nonprofits calculate UBIT; instead of aggregating all of their profits and losses from unrelated business activities, nonprofits must now "silo" their revenues and expenses for each "separate" "trade or business" and pay UBIT on each. Neither of the quoted terms is defined in the law, causing nonprofits, foundations, accountants, and tax lawyers to demand relief and clarity. The proposed rules released last week provide some clear answers and instructions on how to comply with the law immediately, but many questions remain that must be resolved during the formal rulemaking process.

New Year, New Congress, New President: What’s It All Mean for Nonprofits?

By awarding control of Congress and the White House to one party, voters acted to repeal federal government gridlock. A surge of activity has already started and will accelerate once the new president is sworn in later this week. Significant executive and legislative changes are a near certainty. Some changes will affect nonprofits and foundations directly. Other changes—whether viewed as gentle ripples or violent tsunamis—will be felt when the federal changes hit the state and local levels for implementation.