Consultation Regarding Unrelated Business Income Tax

Unrelated Business Income Tax (UBIT) 

Being a not-for-profit doesn’t always mean you’re exempt from all taxes. If your organization earns income from activities not directly related to your tax-exempt mission, the IRS may require you to pay Unrelated Business Income Tax (UBIT).

For example:

• A charity running a gift shop selling non-mission-related merchandise
• A church renting out its parking lot for event parking
• A museum selling ad space in its publications

These activities can still be a great way to generate revenue, but they come with extra tax responsibilities.

How Fontana CPAs Help

Understanding and complying with UBIT rules can be tricky and mistakes can be costly. During our UBIT consultation, we will:

• Review your income sources to determine if they are subject to UBIT
• Analyze IRS exceptions and exclusions that may reduce or eliminate tax owed
• Prepare and file Form 990-T if required
• Help you structure activities to minimize or avoid UBIT in the future
• Provide guidance on recordkeeping so you’re audit-ready

Fontana CPAs help you avoid IRS penalties for unreported taxable income and protect your tax-exempt status by staying fully compliant. By doing so, you can maximize your resources and keep more of what you earn to support your mission.

Contact Us for a FREE Initial Consultation

Or call us today at 727-799-9533 to discuss your not-for-profit or small business unrelated business income tax needs with an experienced CPA.