On May 31, 2021, Chris Moran published “Modernize Revenue Rulings for Tax-Exempt Organizations” in Tax Notes. The following is an excerpt:
The COVID-19 pandemic has forced many tax-exempt organizations to change operations by increasing remote services and hosting virtual events. Also, more and more small and regional newspapers are looking to convert to tax-exempt status as the pandemic has steadily driven advertising revenues toward large internet companies. Technological advances accelerated by the pandemic are likely here to stay. However, key IRS guidance for tax-exempt organizations is outdated. Without modernized guidance from the IRS, tax-exempt organizations may face uncertainty whether revenue from telehealth services and virtual events will be subject to unrelated business income tax. Specifically, updated IRS guidance is necessary to reflect technological advances in the provision of telehealth services, virtual trade shows, and digital news offerings.