Amended 1969, 1978, 1982, 1988
- 1988 Pub. L. 100-647 Pub. L. 100–647 struck out subsec. (d) which read as follows: “Tax Preferences.—
“(1) Organizations taxable at corporate rates.—If an organization is subject to tax on unrelated business taxable income pursuant to subsection (a), the tax imposed by section 56 shall apply to such organizations with respect to items of tax preference which enter into the computation of unrelated business taxable income in the same manner as section 56 applies to corporations.
“(2) Organizations taxable as trusts.—If an organization is subject to tax on unrelated business taxable income pursuant to subsection (b), the taxes imposed by section 55 shall apply to such organization with respect to items of tax preference which enter into the computation of unrelated business taxable income.”
- 1982 Pub. L. 97-248 Pub. L. 97–248 substituted “section 55” for “section 55 and section 56 (as the case may be)”.
- 1978 Pub. L. 95-600 Pub. L. 95–600, § 421(e)(3), substituted provisions relating to organizations taxable at corporate rates and organizations taxable as trusts, for provisions relating to imposition of the tax imposed by section 56 of this title to an organization subject to tax under this section for tax preferences computed in unrelated business taxable income.
- 1969 Pub. L. 91-172 Pub. L. 91–172, § 301(b)(8), added subsec. (d).
Cases: Louisiana Credit Union League v. United States, 693 F.2d 525 (5th Cir. 1982); Service Bolt & Nut Co. Profit Sharing Trust v. Commissioner, 78 T.C. 812 (1982); Fraternal Order of Police Illinois State Troopers Lodge No. 41 v. Commissioner, 87 T.C. 747 (1986)
Forms: Form 990-T
Final rules 1
(a) Charitable, etc., organizations taxable at corporation rates
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(1) Imposition of tax There is hereby imposed for each taxable year on the unrelated business taxable income (as defined in section 512) of every organization described in paragraph (2) a tax computed as provided in section 11. In making such computation for purposes of this section, the term “taxable income” as used in section 11 shall be read as “unrelated business taxable income”.
Amended 1978
- 1978 Pub. L. 95-600 Pub. L. 95–600, § 301(b)(5)(A), substituted “a tax” for “a normal tax and a surtax”.
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(2) Organizations subject to tax
Amended 1960, 1978
- 1978 Pub. L. 95-600 Pub. L. 95–600, § 301(b)(5)(B), substituted “tax” for “taxes” wherever appearing.
- 1960 Pub. L. 86-667 Pub. L. 86–667, § 3(a), included organizations described in section 501(c)(17) within subpar. (A).
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(A) Organizations described in sections 401(a) and 501(c) The tax imposed by paragraph (1) shall apply in the case of any organization (other than a trust described in subsection (b) or an organization described in section 501(c)(1)) which is exempt, except as provided in this part or part II (relating to private foundations), from taxation under this subtitle by reason of section 501(a).
Amended 1966, 1969
- 1969 Pub. L. 91-172 Pub. L. 91–172, § 121(a)(1), removed reference, in heading, to pars. (2), (3), (5), (6), (14)(B), (C), and (17) of section 501(c) of this title, and, in text, struck out exemptions to churches, conventions, or associations of churches, from the imposition of tax on their unrelated business income, made corporations organized under section 501(c)(1) of this title (i.e. organized under Acts of Congress), exempt from such tax, but made all such exemptions subservient to the exceptions in part II and section 501(a) of this title.
- 1966 Pub. L. 89-352 Pub. L. 89–352 inserted “(14)(B) or (C),” after “(6),” in heading and in text.
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(B) State colleges and universities The tax imposed by paragraph (1) shall apply in the case of any college or university which is an agency or instrumentality of any government or any political subdivision thereof, or which is owned or operated by a government or any political subdivision thereof, or by any agency or instrumentality of one or more governments or political subdivisions. Such tax shall also apply in the case of any corporation wholly owned by one or more such colleges or universities.
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(b) Tax on charitable, etc., trusts
Amended 1960
- 1960 Pub. L. 86-667 Pub. L. 86–667, § 3(b), inserted a reference to section 501(c)(17).
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(1) Imposition of tax There is hereby imposed for each taxable year on the unrelated business taxable income of every trust described in paragraph (2) a tax computed as provided in section 1(e). In making such computation for purposes of this section, the term “taxable income” as used in section 1 shall be read as “unrelated business taxable income” as defined in section 512.
Amended 1969, 1977
- 1977 Pub. L. 95-30 Pub. L. 95–30 substituted “section 1(e)” for “section 1(d)”.
- 1969 Pub. L. 91-172 Pub. L. 91–172, § 803(d)(2), substituted section 1(d) for section 1 in reference to section under which the computation of the tax dealing with the imposition of tax on the unrelated business taxable income of trusts, is computed.
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(2) Charitable, etc., trusts subject to tax The tax imposed by paragraph (1) shall apply in the case of any trust which is exempt, except as provided in this part or part II (relating to private foundations), from taxation under this subtitle by reason of section 501(a) and which, if it were not for such exemption, would be subject to subchapter J (sec. 641 and following, relating to estates, trusts, beneficiaries, and decedents).
Amended 1969
- 1969 Pub. L. 91-172 Pub. L. 91–172, § 121(a)(2), pluralized “trust” in heading and in text made the imposition of tax on the unrelated business income of exempt trusts subject to provisions of part II, and, for purposes of determining trusts exempt from taxation, substituted reference to section 501(a) for reference to “section 501(c)(3) or (17) or section 401(a)”.
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(c) Special rule for section 501(c)(2) corporations If a corporation described in section 501(c)(2)—
(1) pays any amount of its net income for a taxable year to an organization exempt from taxation under section 501(a) (or which would pay such an amount but for the fact that the expenses of collecting its income exceed its income), and
(2) such corporation and such organization file a consolidated return for the taxable year,
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such corporation shall be treated, for purposes of the tax imposed by subsection (a), as being organized and operated for the same purposes as such organization, in addition to the purposes described in section 501(c)(2).
Amended 1969
- 1969 Pub. L. 91-172 Pub. L. 91–172, § 121(a)(3), added subsec. (c). Former subsec. (c), covering the effective date, was struck out.