The IRS today released an advance version of Notice 2018-67 as guidance concerning new section 512(a)(6) (which was added to the Code by the U.S. tax law enacted December 22, 2017 (Pub. L. No. 115-97)).
Section 512(a)(6) requires an organization subject to the unrelated business income tax under section 511, with more than one unrelated trade or business, to calculate unrelated business taxable income (UBTI) separately with respect to each trade or business.
Notice 2018-67 [PDF 113 KB] describes issues arising under new section 512(a)(6) and provides the following transition rules and interim guidance under section 512(a)(6) on which organization may rely pending publication of proposed regulations:
The IRS notice requests comments on these and other issues and generally provides that exempt organizations may rely on a reasonable, good-faith interpretation of sections 511 through 514, considering all the facts and circumstances, when determining whether an exempt organization has more than one unrelated trade or business for purposes of section 512(a)(6).
Notice 2018-67 is organized as follows:
For more information, contact a tax professional with KPMG’s Washington National Tax practice:
Alexandra Mitchell | +1 202 533 6078 | firstname.lastname@example.org
Preston Quesenberry | +1 202 533 3985 | email@example.com
Randall Thomas | +1 202 533 3786 | firstname.lastname@example.org
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