Monday, October 24, 2011
The Chronicle of Philanthropy reportsthat the Senate recently rejected Sen. Grassley's proposal to bar the Justice Department from awarding grants to charities that put money in offshore accounts to avoid paying income taxes. In a news item that I somehow missed, a 2010 Senate investigation found that the Boys & Girls' Clubs of America held more than $50 million in offshore equities and partnerships in order to "avoid paying . . . UBIT." I would not have thought that such passive investment income would be subject to UBIT, but perhaps one of the true tax profs among us can explain.