IRS Proposes Regulations for Travel Tours
Key to taxability of income is the amount of time participants spend on actual instruction and education
Travel tours have been one of the primary points of contention between small business and charities in the battle over unrelated business income. The IRS and Congress have regularly looked for abuses. Unless a tour program can contribute very significantly to your mission, it may not be worth the hassle to set one up and claim that it is not subject to unrelated business income tax.
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