August 30, 2018
GRF Nonprofit Tax Partner and Director of Nonprofit Tax, Richard J. Locastro, CPA, JD was quoted in Bloomberg Law’s August 22, 2018 Daily Tax Report on the proposed use of federal codes for nonprofits’ unrelated income.
Treasury and IRS are considering the North American Industry Classification System (NAICS) as an answer to exempt organizations’ concerns about the new reporting requirement to identify separate trades or businesses for calculating unrelated business income (UBI) established by Section 512(a)(6) of the 2017 tax act. Mr. Locastro notes that although it may have limitations, this “reasonable interim solution” should allow organizations to make a good faith effort in categorizing their trades or businesses. For more on the announcement, see Notice 2018-67 available in Internal Revenue Bulletin 2018-36 on September 4. Bloomberg Law subscribers can read the full article here.
If you have questions about calculating UBI or the announcement, please contact Richard J. Locastro, CPA, JD at 301-951-9090 or rlocastro@grfcpa.com. For more on GRF’s nonprofit tax services, visit our website at https://www.grfcpa.com/accounting-services/tax/nonprofit-tax/.