How significant are the taxes on unrelated business activities?

The tax rates are the same as those that apply to regular corporations on Form 1120. However, an exempt association files Form 990-T to report unrelated business taxable income. Most associations, simply by the nature of their operations, will not pay any significant income tax. This is because there is usually no net taxable income resulting from unrelated business activities after allocating expenses. Learn more about unrelated business income tax (UBIT) and your nonprofit when you speak with one of our nonprofit specialists.