Internal Revenue Code section 501(a) organizations are generally exempt from federal income tax. However, if an organization engages in an unrelated trade or business or uses leverage to generate income, the organization may be subject to the unrelated business income tax. The purpose of unrelated business income is to eliminate unfair competition between exempt and nonexempt organizations. This webinar will help you to understand what qualifies as unrelated business income, what activities are taxable and the exceptions along with examples, and the effect of unrelated business activity on tax exempt status.
Learning Objectives:
- Define unrelated business income
- Discuss common sources of unrelated business income
- Discuss the effect of unrelated business activity on tax exempt status
Presenter
Amanda VanNatta, CPA, joined Wegner CPAs in 2019 as a Senior Manager in the firm’s Assurance Department. She joined our team with over 10 years of experience in public accounting and for the last 8 has concentrated in the not for profit tax area. Amanda’s experience includes serving a variety of clients including unions, publicly supported organizations, advocacy organizations, PACs and government grant funded organizations. She is passionate about advising organizations about how to be and stay tax exempt. She also has extensive experience representing organizations in IRS audits with unrelated business income issues and applying for exempt status.
