2003 Tax Help Archives  
  Home > Tax Help Archives > 2003 > Publications > Publication 598
Publication 598 2003 Tax Year

Publication 598
Introductory Material

This is archived information that pertains only to the 2003 Tax Year. If you
are looking for information for the current tax year, go to the Tax Prep Help Area.

Table of Contents

Important Changes

Dues received by agricultural and horticultural organizations. Generally, for 2000, annual membership dues of not more than $112 received from an associate member by a tax-exempt agricultural or horticultural organization are exempt from the tax on unrelated business income. See Dues of Agricultural Organizations and Business Leagues in chapter 4.

New electronic deposit requirement. Beginning January 1, 2000, the threshold that determines whether you must use the Electronic Federal Tax Payment System (EFTPS) to deposit federal taxes, including the unrelated business income tax, has been increased from $50,000 to $200,000. See Tax Deposit Methods in chapter 2.

Introduction

An exempt organization is not taxed on its income from an activity that is substantially related to the charitable, educational, or other purpose that is the basis for the organization's exemption. Such income is exempt even if the activity is a trade or business.

However, if an exempt organization regularly carries on a trade or business that is not substantially related to its exempt purpose, except that it provides funds to carry out that purpose, the organization is subject to tax on its income from that unrelated trade or business.

This publication covers the rules for the tax on unrelated business income of exempt organizations. It explains:

  1. Which organizations are subject to the tax (chapter 1),
  2. What the requirements are for filing a tax return (chapter 2),
  3. What an unrelated trade or business is (chapter 3), and
  4. How to figure unrelated business taxable income (chapter 4).

All section references in this publication are to the Internal Revenue Code.

Useful Items - You may want to see:

Publication

  • 557 Tax-Exempt Status for Your Organization

Form (and Instructions)

  • 990–T Exempt Organization Business Income Tax Return

See chapter 5 for information about getting these publications and forms.

Publications Index | 2003 Tax Help Archives | Tax Help Archives | Home