Back to Submissions

Letters

Unrelated Business Taxable Income

Summary

SIFMA AMG provided input to the U.S. Department of the Treasury and Internal Revenue Service’s request for comments to Notice 2018-672 regarding the calculation of unrelated business taxable income under section 512(a)(6) of the Internal Revenue Code for exempt organizations with more than one unrelated trade or business; interim and transition rules for aggregating certain income in the nature of investments; and the treatment of global intangible low-taxed income inclusions for purposes of the unrelated business income tax.

PDF

Submitted To

IRS

Submitted By

SIFMA AMG

Related Committee(s)

  • Asset Management

Date

3

December

2018

Excerpt

Internal Revenue Service

CC:PA:LPD:PR (Notice 2018-67), Room 5203

P.O. Box 7604

Ben Franklin Station

Washington, DC 20044

RE: Notice 2018-67: Unrelated Business Taxable Income

Ladies & Gentlemen:

The Asset Management Group (“AMG”)1 of the Securities Industry and Financial Markets Association (“SIFMA”) appreciates the opportunity to provide input to the U.S. Department of the Treasury (“Treasury”) and Internal Revenue Service’s (“IRS”) request for comments to Notice 2018-672 (“Notice”) regarding the calculation of unrelated business taxable income (“UBTI”) under section 512(a)(6) of the Internal Revenue Code3 for exempt organizations with more than one unrelated trade or business; interim and transition rules for aggregating certain income in the nature of investments; and the treatment of global intangible low-taxed income inclusions (“GILTI”) for purposes of the unrelated business income tax (“UBIT”).

I. Overview

Section 13702 of P.L. 115-97 (commonly known as the Tax Cuts and Jobs Act of 2017, or the “TCJA”) added new section 512(a)(6) to the Code. Section 512(a)(6) requires organizations exempt from tax who operate more than one unrelated trade or business to compute UBTI separately for each trade or business (without regard to the specific deduction under section 512(b)(12)). Under this provision, an organization’s UBTI for any tax year would be the sum of the amounts (not less than zero) computed for each separate trade or business, less the section 512(b)(12) specific deduction (which is currently $1,000).

Continue Reading >

More Submissions