Welcome
Daily Tax Report ®

IRS Suggests Federal Codes to Sort Nonprofits’ Unrelated Income (1)

Aug. 21, 2018, 3:48 PMUpdated: Aug. 21, 2018, 10:10 PM

Tax professionals have worried about how the IRS will implement a new reporting requirement that could both expose charities and universities to more tax liability and significantly raise tax-compliance burdens.

The IRS says a business classification system used by other federal agencies could be a workable answer to these concerns.

The Treasury Department and Internal Revenue Service are considering using a federal government industry classification system to help nonprofits identify separate trades or businesses for calculating their unrelated business income, according to an Aug. 21 notice (Notice 2018-67). The six-digit classification regime, the North American Industry Classification System,...

To read the full article log in. To learn more about a subscription click here.