Tax-Exempt Organizations and the Unrelated Business Income Tax

T-GGD-87-20: Published: Jun 22, 1987. Publicly Released: Jun 22, 1987.

Additional Materials:

Contact:

Office of Public Affairs
(202) 512-4800
youngc1@gao.gov

GAO discussed the nature and extent of commercial and other income-producing activities of tax-exempt organizations and the use of the unrelated-business income tax to deal with those activities. GAO found that: (1) there are no complete data to measure tax-exempt organizations' income-producing activities and to show how significant the competition is between the taxable-business and tax-exempt communities; (2) although Congress imposed the unrelated-business income tax on activities not related to an exempt purpose, activities related to the exempt purpose are not taxed, regardless of their competitive nature; (3) the Internal Revenue Service (IRS) cannot routinely identify the most noncompliant organizations, since it does not have the necessary information; and (4) members of the tax-exempt community increasingly use fees for services and income-producing activities to fund their operations. GAO believes that IRS and national tax-exempt organization associations should provide more information to tax-exempt organizations on the unrelated-business-tax requirements to avoid misunderstandings and incorrect returns.

Sep 6, 2017

May 18, 2017

May 17, 2017

Apr 27, 2017

Apr 26, 2017

Mar 8, 2017

Jan 31, 2017

Jan 27, 2017

Jan 9, 2017

Sep 13, 2016

Looking for more? Browse all our products here