Form 990 and Unrelated Business Income
Tuesday, June 22, 2021
8:30 AM to 10:10 AM

Speaker: Louis Michelson, Esq
2 Federal Tax Law Hours
IRS: 18QC1-T-01473-21-O
CTEC: 1000-CE-4874

Session Description:
This topic provides an overview the Form 990 and explains important disclosure issues. It identifies key filing considerations and the underlying tax exemption principles involved. In addition, it examine the core elements of unrelated business income and review strategies for recognizing and minimizing this tax liability.

Knowledge Level: Advanced

Learning Objectives:

#1: IRS Form 990 must be both a complete and accurate document as well as a transparent source of information that is relied upon by potential funders, beneficiaries, the media, and the public in general. This topic will provide an overview the Form 990 and will explain certain important disclosure issues that the presenter repeatedly has encountered. Disclosure issues include for example how to classify income on Part VIII, Statement of Revenues or Schedule B, Schedule of Contributors and what information needs to be disclosed what information is protected from disclosure.

#2: IRS Form 990 has many schedules that need to be prepared properly. Some schedules affect many public charities such as Schedule A, Public Charity and Public Support. This webinar will provide illustrations of both donative public charities and exempt function charities and how they complete Schedule A. This presentation explains points to consider in preparing sensitive schedules such as Schedule B, Schedule of Contributors, Schedule M, Non-Cash Contributions, Schedule L, Transactions with Interested Persons and Schedule R, Related Organizations and Unrelated Partnerships.

#3: After this topic, you will understand the core elements of unrelated business taxable income. You will be introduced to strategies for recognizing and minimizing this tax liability, including categories of income that are excluded from the calculation of unrelated business taxable income, whether as “modifications” or as “exceptions” for certain activities. The difference between exempt royalty income and taxable personal service income will be discussed. This presentation will also explain the use of controlled corporations and the unrelated debt-finance income rules the benefits and limitations of corporate sponsorships.

Louis Michelson, Esq

Louis E. Michelson focuses his practice on income tax planning, charitable giving and other federal, state and local taxation issues for individuals, corporations and tax-exempt organizations. Mr. Michelson advises public charities, private foundations, religious and educational organizations, and other nonprofit organizations on issues of formation, management, joint ventures, planned giving and board governance. He also has extensive experience with income tax planning for business transactions and estate planning.Mr. Michelson is AV® Peer Review Rated by Martindale-Hubbell effective December,
2003.

Mr. Michelson received his B.A. Degree, with general honors from the University of Chicago, his M.S. in Accountancy from DePaul University and his J.D. degree from UCLA School of Law. He has been admitted to practice with the U.S. Tax Court and the United States District Court, Central District of California.

Mr. Michelson is Immediate Past Chair of the Nonprofit Organizations Committee of the Business Law Section of the California Lawyers Association. He has served as Chair of the Tax-Exempt Organizations Committee of the Taxation Section of the State Bar of California, as Co-Chair of the Nonprofit Organizations Committee of the Business Law Section of the State Bar of California and as Chair of the Taxation Section of the Los Angeles County Bar Association. In May 2001 he participated in the Los Angeles County/California State Bar delegation to the Internal Revenue Service, Treasury and staff of the

Congressional tax committees in Washington D.C. to discuss proposed guidance, as set forth in a co-authored paper, “Getting Connected: Business and Politics of Charities on the Internet.” Together with other attorneys, he assisted in reviewing and suggesting revisions to portions of the California Attorney General’s Guide to Charities. Mr. Michelson is a lecturer at UCLA Extension on tax issues for nonprofit organizations. He is also Adjunct Professor at David Nazarian College of Business and Economics California State University Northridge for a class on income taxation of trusts and estates. He has lectured for business and professional organizations and written articles on various federal and California tax topics. He is a member of the American Bar Association, California Lawyers Association, and Los Angeles County Bar Association.