UBIT Fact Sheet 1, Nonprofit Organizations with Unrelated Business by qwe7utyr

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									                                                                                                                                    www.taxes.state.mn.us


Nonprofit Organizations with Unrelated Business Income
                                                                                                                                                         1
Franchise Tax for Nonprofit Organizations                                                                                                           Fact Sheet

Organizations required to file one of the federal tax returns                 •	 1120-C	filers.	File	by	the	15th	day	of	the	ninth	month	after	
listed below are also required to file a Minnesota return to pay                 the end of the tax year.
tax on income assigned to Minnesota. This unrelated business                  •	 Organizations	with	a	short	taxable	year.	Short-year
income tax (UBIT) applies to:                                                    returns	are	due	by	the	15th	day	of	the	third	month	
•	 Exempt	organizations	with	unrelated	business	income	and	                      following the month in which the short year ends.
   organizations liable for proxy tax on lobbying and political               The U.S. postmark date, or date recorded or marked by
   expenditures that file federal Form 990-T,                                 a	designated	delivery	service,	is	considered	the	filing	date	
•	 Farmers’	cooperatives	as	defined	in	IRC	section	521	that	file	             (postage	meter	marks	are	not	valid).	When	the	due	date	falls	
   federal	Form	1120-C,                                                       on a Saturday, Sunday or legal holiday, returns postmarked on
•	 Homeowner	associations	that	file	federal	Form	1120-H,	and                  the	next	business	day	are	considered	timely.	When	a	return	is	
•	 Political	organizations	that	file	federal	Form	1120-POL.                   filed	late,	the	date	it	is	received	at	the	department	is	treated	as	
To file and pay your Minnesota UBI tax, use the following                     the date filed.
forms:
•	 File	Form M4NP, Unrelated Business Income Tax Return, to                   Electronic payment requirements
   pay Minnesota tax on unrelated business income. You must                   If	your	UBI	tax	liability	for	the	12-month	period	ending	
   attach a complete copy of your federal return, including all               June	30	is	$10,000	or	more,	or	if	you	are	required	to	pay	any	
   supporting schedules, when you file this form.                             Minnesota business tax electronically, you must pay all state
•	 Use	Form M4NPI, Income Adjustments, Deductions and                         taxes	electronically.	A	5	percent	penalty	will	be	assessed	if	you	
   Credits, to report adjustments to income, deductions and                   fail to do so when required.
   credits.
                                                                              Other important contact information
•	 Use	Form M4NPA, Apportionment Calculation, if you con-
   duct business both in and outside Minnesota.                               Minnesota	Department	of	Revenue
                                                                              Business	Registration	 . . . . . 	651-282-5225	or	1-800-657-3605
•	 Complete	Schedule M15NP, Additional Charge for                                                                       business.registration@state.mn.us
   Underpayment of Estimated Tax, if you underpaid or did not
   make timely estimated tax payments.                                        Lawful	gambling	 . . . . . . . . . . . . . . . . . . . . . . . . . 	651-297-1772
                                                                                                                       lawfulgambling.taxes@state.mn.us
•	 If you are not required to pay electronically (see Electronic
                                                                              Sales and use tax, including exemption
   payment requirements on this page) and you choose to pay
                                                                                 information . . . . . . . . . . . 	651-296-6181	or	1-800-657-3777
   by check, you must mail your payment with the appropriate
                                                                                                                                        salesuse.tax@state.mn.us
   payment	voucher.	Use	Form PV56 to pay tax owed when
   filing your tax return, Form M45 to make an estimated tax                  Withholding	tax	. . . . . . . . . . 	651-282-9999	or	1-800-657-3594
   payment, Form PV84 to pay the tax by the due date when                                                                       withholding.tax@state.mn.us
   you	can’t	file	your	return	on	time,	and	Form PV66 to pay                   Tip line . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 	1-800-657-3500
   tax when filing an amended return.                                         TTY users . . . . . . . . . . . . . . . . . . 	Call	711	for	Minnesota	Relay
                                                                              Other	Minnesota	offices
Due dates                                                                     Office of the Attorney General . . . . . . . . . www.ag.state.mn.us
The	due	date	for	filing	Form	M4NP	and	paying	tax	owed	is	                     	 Charities	Division	. . . . . . . . . . . . . . . . . . . . . . 	651-296-6172
the same as for your federal return. The federal and state due                Office of the Secretary of State . . . . . . . . www.sos.state.mn.us
dates are:                                                                      Annual registration . . . . . . . . . . . . . . . . . . . . 	651-296-2803
                                                                              Gambling	Control	Board	 . . . . . . . . . . . . www.gcb.state.mn.us
•	 1120-H	and	1120-POL	filers.	File	by	the	15th	day	of	the	
                                                                              	 	 	 	                                                           651-639-4000
   third month after the end of the calendar or fiscal year. For
   calendar	year	taxpayers,	the	due	date	is	March	15.	                        Internal	Revenue	Service	(IRS) . . . . . . . . . . . . . .	www.irs.gov
•	 990-T	filers.	File	by	the	15th	day	of	the	fifth	month	after	the	           Exempt	Organizations	 . . . . 	651-312-7716	or	1-877-829-5500
   end of the tax year.                                                       IRS	forms	 . . . . . . . . . . . 	1-800-TAX-FORM	(1-800-829-3676)


Special	Taxes	Division	–	Mail	Station	1257	–	St.	Paul,	MN	55146-1257          This fact sheet is intended to help you become more familiar with Minnesota
Phone:	651-297-5199                                                           tax laws and your rights and responsibilities under the laws. Nothing in this
Minnesota	Relay	711	(tty)                                                     fact	sheet	supersedes,	alters	or	otherwise	changes	any	provisions	of	the	tax	law,	
ubi.taxes@state.mn.us                                                         administrative	rules,	court	decisions	or	revenue	notices.	Alternative	formats	
                                                                              available	upon	request.
Revised 11/09                                                          Minnesota Revenue, Nonprofit Organizations with Unrelated Business Income 1

								
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