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Draft Schedule M to Form 990-T, separately computing UBTI (2018)

Draft Schedule M to Form 990-T, UBTI

The IRS has posted a draft version of new Schedule M to be filed with Form 990-T for 2018.

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The new Schedule M, Unrelated Business Taxable Income for Unrelated Trade or Business, would accompany the 2018 version of Form 990-T, Exempt Organization Business Income Tax Return, and would be used by organizations with more than one unrelated trade or business to compute unrelated business taxable income (UBTI) for each unrelated trade or business.

The draft version of Schedule M [PDF 102 KB] has a “watermark date” of November 6, 2018, and includes cautionary language that it is not to be relied upon for filing purposes and is subject to change and to OMB approval before being officially released. 

The one-page schedule consists of two parts—both of which are identical to corresponding parts on the draft Form 990-T (2018) itself (the draft of which was originally released in October 2018). 

The draft instructions to the 2018 Form 990-T (also released in October, read TaxNewsFlash) state that an organization with more than one unrelated trade or business should complete Part I and Part II on page 1 of the Form 990-T and—for each additional unrelated trade or business—complete and attach a separate Schedule M and complete and attach statements containing the information required by Schedules A through K as necessary. 

 

For more information, contact a tax professional with KPMG’s Washington National Tax practice:

Preston Quesenberry | +1 202 533 3985 | pquesenberry@kpmg.com

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