UBTI and UBIT for Exempt Organizations: Mastering Form 990-T

Getting Calculations Right and Avoiding Audit Traps

A live 110-minute CPE webinar with interactive Q&A


Wednesday, May 24, 2017
1:00pm-2:50pm EDT, 10:00am-11:50am PDT

Early Registration Discount Deadline, Friday, April 28, 2017


This webinar will give nonprofit tax professionals and advisers a deep dive into the rules governing unrelated business income tax (UBIT), which U.S.-based tax-exempt organizations must pay on unrelated business taxable income (UBTI). The webinar will focus on the standards and guidelines for determining whether income is UBTI and thus subject to tax, and will provide a detailed exploration into the calculations and preparation of Form 990-T, Exempt Organization Business Income Tax Return.

Description

A primary concern of tax-exempt organizations is the challenge of navigating the rules on UBTI. Many exempt organizations receive business income and depend on that income to carry on their charitable purpose. However, UBTI generates the need to file an income tax return and can lead to an unexpected tax bill, and excess UBTI can jeopardize a nonprofit organization’s exempt status.

As the nature of nonprofit organizations evolves, and the distinction between exempt and for-profit organizations becomes less certain, tax advisers of nonprofit entities can expect continued scrutiny from the IRS on UBTI. Exempt organizations must carefully review their UBTI calculations to avoid having income or expenses reclassified as taxable by the IRS.

Through proper planning and reporting, exempt organizations may be able to anticipate and mitigate the impact of UBTI. Tax advisers need to know the specifics of tax return treatment of UBTI to assist nonprofit clients in complying with the UBTI regulations.

Listen as our panel of experienced nonprofit tax advisers provides a deep dive into the rules and reporting requirements governing UBTI for exempt organizations.

Outline

  1. Unrelated business taxable income overview
  2. Form 990-T filing thresholds
  3. UBTI calculations and schedules
    1. Tax computation
    2. Allocation of expense deductions
    3. Rent income (Schedule C)
    4. Unrelated debt-financed income (Schedule E)
    5. Exploited activities (Schedule I)
    6. Advertising income (Schedule J)
    7. Other schedules
  4. IRS audit “triggers” leading to increases in UBTI

Benefits

The panel will discuss these and other important topics:

  • Definitions of UBTI and Form 990-T filing thresholds
  • Deductions standards for expenses in UBTI calculations
  • Rental income as UBTI
  • Affinity contracts
  • Advertising activities
  • Alternative investments
  • Unrelated debt-financed income

Learning Objectives

After completing this course, you will be able to:

  • Identify what qualifies as UBTI for an exempt organization
  • Recognize proper computation of allocable expenses directly connected to the operation of the unrelated trade or business
  • Discern preparation errors that lead to reclassification of UBTI and resultant penalties

Faculty

Brenda Blunt, Tax Partner
Eide Bailly, Phoenix

Ms. Blunt has nearly 30 years of experience providing services to tax-exempt entities, closely-held business and their stakeholders. She provides income tax compliance and planning for individuals, corporations, partnerships and tax-exempt entities and represents clients before the IRS and state taxation authorities. Ms. Blunt has significant experience planning for the tax aspects of unrelated business income for non-profits and retirement plans.

Michael N. Fine, Partner
Wyatt Tarrant & Combs, Louisville, Ky.

Mr. Fine's practice spans the full range of nonprofit and tax-exempt organization legal issues, advising public charities, private foundations, boards, and donors. He regularly assists clients with tax compliance and corporate planning matters including executive compensation, intermediate sanctions, joint ventures, affiliation strategies, reorganizations, governance, charitable contributions, captive insurance, and obtaining tax exemption from the IRS. He is a frequent speaker and author, and has written numerous publications including articles on Section 501(r)’s requirements for tax-exempt hospitals and a guide on establishing "Friends of" organizations within the United States.

Frank H. Smith, CPA, Partner
Raffa, Washington, D.C.

Mr. Smith has more than 20 years of experience working with tax-exempt organizations and is considered a subject matter expert in analyzing complex nonprofit transactions. He is also skilled in the nuances of tax accounting and IRS regulations pertaining to private foundations. He manages his firm’s exempt organization tax department, preparing and reviewing annual tax returns and providing tax consultation services related to the day-to-day operations of a variety of tax-exempt organizations. Previously, he was a senior manager in the national tax department of Ernst & Young, where he specialized in analyzing and addressing tax issues related to the nonprofit industry. He worked with an array of tax-exempt organizations nationwide and was responsible for monitoring the regulatory and legislative developments of the nonprofit industry on a daily basis.


Registration per Person for Live Event

Additional lines for this conference can be purchased at 25% off. For orders of five or more lines, further discounts will apply and will be automatically reflected in the cart.

Live Webinar $97.00

Includes Early Discount Savings of $50.00 (through 04/28/17)

Live Webinar & CPE Processing $132.00

Includes Live Webinar Early Discount Savings of $50.00 (through 04/28/17)


CPE per Person on Live Event

Continuing Professional Education credit processing is available for an additional fee. CPE processing must be ordered prior to the event. To qualify for CPE you may not listen via the telephone.

This program is eligible for 2.0 CPE credits.

  • Field of Study: Taxes.
  • Level of Knowledge: Intermediate.
  • Advance Preparation: None.
  • Teaching Method: Seminar/Lecture.
  • Delivery Method: Group-Internet (via computer).
  • Attendance Monitoring Method: Attendance is monitored electronically via a participant's PIN and through a series of verification codes announced throughout the presentation.
  • Prerequisite: Three years+ business or public firm experience at mid-level within the organization, preparing complex tax forms and schedules; supervisory authority over other preparers/accountants. Specific knowledge and understanding of UBTI and UBIT for Form 990 T.

NOTE: CPE credit processing for all attendees must be ordered by 2pm Eastern the day of the program to receive a Certificate of Attendance within 24 hours.


Recordings

Recorded Event

Includes full event recording plus handouts (available after live webinar).

Note: Self-study CPE and EA credits are not offered on recorded events.

Recorded Webinar Download $97.00
Available 48 hours after the live event

Includes Early Discount Savings of $50.00 (through 04/28/17)

How does this work?

Recorded Audio Download (MP3) $97.00
Available 24 hours after the live event

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How does this work?

DVD (Slide Presentation with Audio) $97.00 plus $9.45 S&H
Available ten business days after the live event

Includes Early Discount Savings of $50.00 (through 04/28/17)

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Registration Plus Recorded Event

Best value!

Live Webinar & Webinar Download $144.00

Includes Special Savings of $150.00 (through 04/28/17)

Live Webinar & Audio Download $144.00

Includes Special Savings of $150.00 (through 04/28/17)

Live Webinar & DVD $144.00 plus $9.45 S&H

Includes Special Savings of $150.00 (through 04/28/17)


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Strafford Publications, Inc. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.nasbaregistry.org.

IRS Approved Provider

Strafford is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).

Early Registration
Discount Deadline
April 28, 2017
(4 days)

or call 1-800-926-7926

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EA Credit

Strafford is an IRS approved continuing education provider and this course is approved for 2 enrolled agent (EA) credit hours.

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Accounting Non-Profit Services Advisory Board

Bill Allen

Partner

Making Auditors Proficient

Steven J. Luber

Senior Manager

PricewaterhouseCoopers

Celia Roady

Tax Partner

Morgan Lewis

Daniel Romano

Partner-In-Charge, National Not-For-Profit Tax Practice

Grant Thornton

Chris Stanz

Principal, Non-Profit and Government Practice

LarsonAllen

Alan Strand

Principal

Strand and Associates

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