IRS Releases Interim Guidance for Unrelated Business Taxable Income

The IRS released Notice 2018-67, which provides interim guidance addressing section 512(a)(6). Section 512(a)(6), added by the Tax Cuts and Jobs Act, requires a taxpayer to calculate its unrelated business taxable income separately for each unrelated trade or business in which the taxpayer is engaged. In determining whether a taxpayer has more than one trade or business, the Notice provides that a taxpayer may use a “reasonable, good-faith interpretation” of sections 511 through 514 of the of the Internal Revenue Code. Such an interpretation includes the use of North American Industry Classification System six-digit codes. The Notice also provides that global intangible low-taxed income will be treated as a dividend under section 512.

Read more: Notice 2018-67; Guidance on UBTI Allocations Allows ‘Good Faith’ Interpretations

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