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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 $10.60 for 2016. 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 $161 for 2016. See Exception under Dues of Agricultural Organizations and Business Leagues later.

  • Extension of special rule for contributions of capital gain real property made for conservation purposes has been made permanently tax deductible for payments received or accrued after December 31, 2015. You can claim the contribution of capital gain real property made for conservation purposes that occurred after December 31, 2015, on Form 990-T. See Suspension of deduction limits for farmers and ranchers.

  • The exclusion from unrelated business taxable income for qualifying specified payments under section 512(b)(13)(E) has been permanently extended for payments received or accrued after December 31, 2014. You can claim the qualifying specified payments that occurred after December 31, 2014, on Form 990-T. See Excess qualifying specified payments.

  • 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 84201-0027


An exempt organization isn’t 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.

  You can send your comments from Click on "More Information" and then on "Give us feedback." Or you can write to:

Internal Revenue Service  
Tax Forms and Publications 
1111 Constitution Ave. NW, IR-6526  
Washington, DC 20224

  We respond to many letters by telephone. Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence.

  Although we can’t respond individually to each comment received, we do appreciate your feedback and will consider your comments as we revise our tax products.

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