What is unrelated business taxable income in Form 990?
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Last modified 3/13/2023 3:48:31 AM EST
990-PF 990-N 990-EZ 990 8868 1120-POL
Unrelated business taxable income is the income produced by tax-exempt organizations through activities unrelated to the organization's primary tax-exempt purposes.
For example, if a school generates income through activities unrelated to an educational purpose, the income will be considered an unrelated business taxable income.
An organization must file a Form 990-T if the gross unrelated business taxable income is $1000 or more. If an organization fails to do so, it must provide the IRS with a reasonable explanation on an attached Schedule O.