Bloomberg Tax
Sept. 11, 2020, 4:34 PM

CPAs Ask IRS to Excuse Small Nonprofits From Reporting Rules

Sam McQuillan
Sam McQuillan
Reporter

A CPA group is again pushing the IRS to exclude nonprofits with minimal taxable income from a requirement that they report income streams separately.

Proposed rules (REG-106864-18) issued in April did offer nonprofits some relief for the 2017 tax law reporting change, which applies to unrelated business income. The rules proposed a way for nonprofits to combine income streams.

The American Institute of CPAs recommended the IRS let organizations with less than $10,000 in unrelated business taxable income (UBTI) combine their income into one stream for reporting purposes.

  • Organizations of that size are “likely to lack the ...