ASAE is seeking a one-year delay in how associations calculate unreleased business income on their federal taxes to give the government more time to provide additional guidance on the matter.

The Tax Cuts and Jobs Act passed by Congress last year establishes a new requirement that tax-exempt organizations conducting more than one unrelated trade or business calculate UBI separately for each unrelated trade or business, according to ASAE. Previously, exempt organizations could report their UBI from all activities, deduct the related expenses and pay tax on the resulting net taxable income.

ASAE said additional guidance from the government is needed to assist tax-exempt organizations in determining what makes up a separate unrelated trade or business. In an April 24 letter, ASAE CEO John Graham asked the Treasury Department and IRS to push the implementation date of the change from the tax year beginning Dec. 31, 2017, to the one beginning Dec. 31 of this year.

"Absent specific guidance, it is extremely difficult for tax-exempt organizations to keep appropriate records and report UBI accurately in compliance with this provision," Graham said.

A one-year delay "is more than warranted to allow tax-exempt organizations time to determine how to comply with the new reporting requirements," he added. http://bit.ly/2JOAZ6n

MORE CEO DATELINE

• Trucking associations CEO accuses OOIDA ‘interests' of making threats
• Reports: Sommers in running for head of American Petroleum Institute
• Brewers Association encouraging retailers to use independent brewers logo
• American Bankers Association runs ads supporting congressional candidates
• Former head of National Marine Manufacturers Association dies