# 26 U.S.C. § 511: Imposition of tax on unrelated business income of charitable, etc., organizations Source: OLRC release point 119-134 . Cite pinpoints as 26 U.S.C. § 511(a)(1). ## § 511(a) Charitable, etc., organizations taxable at corporation rates **§ 511(a)(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”. **§ 511(a)(2) Organizations subject to tax.** **§ 511(a)(2)(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). **§ 511(a)(2)(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. ## § 511(b) Tax on charitable, etc., trusts **§ 511(b)(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. **§ 511(b)(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). ## § 511(c) Special rule for section 501(c)(2) corporations If a corporation described in section 501(c)(2)— **§ 511(c)(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 **§ 511(c)(2)** such corporation and such organization file a consolidated return for the taxable year, 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). ## Regulations - [Treas. Reg. § 1.511-1](/26/reg/1.511-1.md): Imposition and rates of tax. (interprets § 511) - [Treas. Reg. § 1.511-2](/26/reg/1.511-2.md): Organizations subject to tax. (interprets § 511) - [Treas. Reg. § 1.511-3](/26/reg/1.511-3.md): Provisions generally applicable to the tax on unrelated business income. (interprets § 511) - [Treas. Reg. § 1.511-4](/26/reg/1.511-4.md): Minimum tax for tax preferences. (interprets § 511) ## Forms named in the regulations - [Form 990-T](https://www.irs.gov/pub/irs-pdf/f990t.pdf) ## Final rules - [85 FR 74010](https://www.federalregister.gov/documents/2020/11/19/2020-22144/guidance-under-section-529a-qualified-able-programs) (2020): Guidance Under Section 529A: Qualified ABLE Programs ## Leading cases - [Louisiana Credit Union League v. United States, 693 F.2d 525 (5th Cir. 1982)](https://www.courtlistener.com/opinion/411167/louisiana-credit-union-league-v-the-united-states-of-america/) - [Service Bolt & Nut Co. Profit Sharing Trust v. Commissioner, 78 T.C. 812 (1982)](https://www.courtlistener.com/opinion/4705564/service-bolt-nut-co-profit-sharing-trust-v-commissioner/) - [Fraternal Order of Police Illinois State Troopers Lodge No. 41 v. Commissioner, 87 T.C. 747 (1986)](https://www.courtlistener.com/opinion/4706348/fraternal-order-of-police-illinois-state-troopers-lodge-no-41-v/) ## Connections Cites: § 1 Tax imposed; § 11 Tax imposed; § 501 Exemption from tax on corporations, certain trusts, etc.; § 512 Unrelated business taxable income Cited by: § 12 Cross references relating to tax on corporations; § 50 Other special rules; § 56A Adjusted financial statement income; § 168 Accelerated cost recovery system; § 199A Qualified business income; § 220 Archer MSAs; § 223 Health savings accounts; § 337 Nonrecognition for property distributed to parent in complete liquidation of subsidiary; § 408 Individual retirement accounts; § 448 Limitation on use of cash method of accounting; § 501 Exemption from tax on corporations, certain trusts, etc.; § 509 Private foundation defined; § 512 Unrelated business taxable income; § 513 Unrelated trade or business; § 514 Unrelated debt-financed income; § 515 Taxes of foreign countries and possessions of the United States; § 527 Political organizations; § 529 Qualified tuition programs; § 529A Qualified ABLE programs; § 530 Coverdell education savings accounts; § 856 Definition of real estate investment trust; § 860E Treatment of income in excess of daily accruals on residual interests; § 995 Taxation of DISC income to shareholders; § 1245 Gain from dispositions of certain depreciable property; § 1250 Gain from dispositions of certain depreciable realty; § 1443 Foreign tax-exempt organizations; § 1563 Definitions and special rules; § 2651 Generation assignment; § 4940 Excise tax based on investment income; § 4968 Excise tax based on investment income of private colleges and universities; § 6011 General requirement of return, statement, or list; § 6104 Publicity of information required from certain exempt organizations and certain trusts; § 6654 Failure by individual to pay estimated income tax; § 6655 Failure by corporation to pay estimated income tax; § 7611 Restrictions on church tax inquiries and examinations; § 7871 Indian tribal governments treated as States for certain purposes Derived from: 1939 § 421(a), (b) ## Amendments - 1954-08-16: [Act Aug. 16, 1954, ch. 736](/26/act/1954-ch736.md), 68A Stat. 169 - 1960-07-14: [Pub. L. 86-667](/26/act/86-667.md), 74 Stat. 535 - 1966-02-02: [Pub. L. 89-352](/26/act/89-352.md), 80 Stat. 4 - 1969-12-30: [Pub. L. 91-172](/26/act/91-172.md), 83 Stat. 536 - 1977-05-23: [Pub. L. 95-30](/26/act/95-30.md), 91 Stat. 133 - 1978-11-06: [Pub. L. 95-600](/26/act/95-600.md), 92 Stat. 2821 - 1982-09-03: [Pub. L. 97-248](/26/act/97-248.md), 96 Stat. 419 - 1983-01-12: [Pub. L. 97-448](/26/act/97-448.md), 96 Stat. 2400 - 1988-11-10: [Pub. L. 100-647](/26/act/100-647.md), 102 Stat. 3435