Disclosure of uncertain tax positions: Are you in compliance?

Description

Abstract: A not-for-profit, tax-exempt organization might think that the subject of “uncertain tax positions” (UTPs) doesn’t apply to it. But some of the basics of its operations, including its tax-exempt status, could create uncertain tax positions that trigger critical reporting obligations. This article shows how to engage in a two-step process to determine whether one’s organization has UTPs, particularly if it engages in unrelated business activities. It also discusses activities that can threaten a nonprofit’s tax-exempt status.