Nonprofits Face Headaches Under Income Reporting Rules (1)

Nonprofits could soon get long-awaited guidance on the tax law’s change to reporting requirements for income they make from business unrelated to their core mission.

The 2017 overhaul said that nonprofits can no longer report unrelated business income—which is taxable—in one chunk. Instead, they have to separate out each flow of income, calculating and reporting things like ticket sales for football games, income on rental property, and profit from franchise agreements separately.

Nonprofits have been awaiting instructions on how to do that for years. On Monday the White House review office began studying the IRS proposed ...