Publication 598 - Introductory Material

Future Developments

The IRS has created a page on for information about Pub. 598, at Information about any future developments affecting Pub. 598 (such as legislation enacted after we release it) will be posted on that page.

What's New

  • The maximum cost of a low-cost article, for organizations eligible to receive charitable contributions, was increased to $10.40 for 2014. See Distribution of low-cost articles, later.

  • The annual limit on associate member dues received by an agricultural or horticultural organization not treated as gross income was increased to $158 for 2014. See Exception under Dues of Agricultural Organizations and Business Leagues later.

  • The extension of special rule for contributions of capital gain real property made for conservation purposes has been extended for one year for the payment received or accrued before January 1, 2015. You can claim the contribution of capital gain real property made for conservation purposes that occurred before January 1, 2015, on Form 990-T.

  • The exclusion from unrelated business taxable income for qualifying specified payments under section 512(b)(13)(E) has been extended for one year for payments received or accrued before January 1, 2015. You can claim the qualifying specified payments that occurred before January 1, 2015, on Form 990-T.

  • Effective 2014, if a private delivery service is used, only deliver Form 990-T to: Internal Revenue Submission Processing Center 1973 North Rulon White Blvd. Ogden, UT 84404


An exempt organization is not taxed on its income from an activity substantially related to the charitable, educational, or other purpose that is the basis for the organization's exemption. Such income is exempt even if the activity is a trade or business.

However, if an exempt organization regularly carries on a trade or business not substantially related to its exempt purpose, except that it provides funds to carry out that purpose, the organization is subject to tax on its income from that unrelated trade or business.

This publication covers the rules for the tax on unrelated business income of exempt organizations. It explains:

  1. Which organizations are subject to the tax (chapter 1),

  2. What the requirements are for filing a tax return (chapter 2),

  3. What an unrelated trade or business is (chapter 3), and

  4. How to figure unrelated business taxable income (chapter 4).

All section references in this publication are to the Internal Revenue Code.

Useful Items - You may want to see:


  • 557 Tax-Exempt Status for Your Organization

Form (and Instructions)

  • 990-T Exempt Organization Business Income Tax Return

See chapter 5 for information about getting these publications and forms.

Comments and suggestions.   We welcome your comments about this publication and your suggestions for future editions.

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