Which of the following statements is not correct?
A) The unrelated business income tax (UBIT) does not apply to exempt organizations that receive broad public support.
B) The unrelated business income tax (UBIT) treats the tax-exempt entity as if it were subject to the corporate income tax on its unrelated business income.
C) Unrelated business income is income derived from activities not related to the exempt purpose of the exempt organization.
D) Only a. and c. are not correct.
E) a., b., and c. are not correct

Question

Quizplus · Accepted Answer

The statement "The unrelated business income tax (UBIT) does not apply to exempt organizations that receive broad public support" is not correct. In fact, even if an exempt organization receives broad public support, it may still be subject to the UBIT if it has unrelated business income.

Which of the Following Statements Is Not Correct