Use Form 8868, Application for Extension of Time to File an Exempt Organization
Return, to request an extension.
To the extent an exempt organization
has gross income (defined as gross receipts less cost of goods sold) of more than $1,000 from a regularly conducted unrelated trade or business, it must file Form 990-T, Exempt Organization
Business Income Tax Return, to report and pay income tax on its UBTI.
6) Founders or controlling members of an exempt organization
On some state returns, this is accomplished on the line(s) for nonapportionable income, for example, lines 4 and 8 on Wisconsin's 2014 Form 4T, Wisconsin Exempt Organization
Business Franchise or Income Tax Return.
In the second scenario, consider an exempt organization
that owns an office building containing its headquarters that also has parking facilities.
Depending on the degree of involvement of the exempt organization
, there are four types of joint ventures that may come into play:
Currently, the IRS is investigating situations involving the use of tax-exempt bonds to finance health care facilities in order to determine whether the exempt organization
participant furthers private interests impermissibly.
In a letter ruling, the Internal Revenue Service dealt with a tax-exempt organization
that maintained a teaching hospital formed a wholly-owned captive which reinsured an admitted carrier which had provided medical malpractice insurance to the exempt organization
, full-time faculty members, several other hospitals and full-time resident physicians employed by the hospitals.
The Exempt Organization
as Lender or Ground Lessor.
However, how an exempt organization
computes UBTI for state income tax purposes varies from state to state.
But according to Williams, Business Systems was "left out of the loop" about the added filing requirement, and the impact this new filing requirement would have on closed exempt organization
application cases attempting to post to the BMF.
The revenue ruling (2004-51) discusses whether an exempt organization
that contributes to, and conducts part of its activities through, a limited liability company formed with a for-profit partner continues to qualify for exemption.