Unrelated Business Income Tax Studies

It has become increasingly important for tax-exempt organizations to understand whether they have unreported federal, state, local, or foreign income tax activities, as the IRS is placing more focus on compliance in this area.

Information and Peace of Mind

With CapinCrouse’s unrelated business income tax (UBIT) services, the benefits to your team and organization are generally three-fold:

• You will gain peace of mind in knowing that you have reviewed your operations to identify potential unrelated business activities and have either:
  • substantiated a viable basis to provide that any income is not unrelated, or
  • reported unrelated business income in compliance with IRS requirements.
• You will have performed the analysis required to answer the AICPA’s FIN 48 checklist question that asks, “Has management identified every revenue-generating income source, made an assessment of probable taxation of the income, and documented its assessment in writing?”
• The time we spend consulting with you onsite or by phone or videoconference will provide your team with the opportunity to ask us questions that can provide an overall IRS UBIT “checkup.”

Services to Fit Your Organization’s Needs

We offer three different levels of UBIT study services to meet your requirements:

• Comprehensive UBIT Study – In-depth analysis and documentation of your organization’s activities and any reporting requirements
• UBIT Analysis – Analysis and documentation of five to eight specific identified unrelated business activities and their potential treatment under the IRS’s UBIT rules
• UBIT Overview – Designed to help your leadership identify, manage, and plan for potential UBIT issues

Contact us to learn more about our UBIT studies and how they may benefit your organization.