What is Unrelated Business Income Tax?

Exempt organizations that generate business income unrelated to the organization's mission must file a federal income tax return. The 990-T form is used to report the net taxable income from those unrelated activities. Massachusetts also requires exempt organizations to file income tax returns reporting UBIT.  

UBIT analysis is complex and requires significant review of specific facts to properly determine whether or not an activity in your Tub might generate UBIT or whether a particular exception applies to your facts. Please contact Tax Reporting to discuss the particular situation in your Tub if you believe your Tub may be engaged in a UBIT-generating activity.

Resources

• UBIT Policy and Examples
• IRS guidance on unrelated business income tax
  • Massachusetts typically follows the Federal guidance, unless noted otherwise

Please contact the Tax Reporting team with any questions.