When must Form 990-T be filed regarding UBTI?

Form 990-T is used by tax-exempt organizations to report unrelated business taxable income (UBTI) and to calculate any tax owed on that income. The specific requirement for filing this form is tied to the threshold of total positive UBTI.

When total positive UBTI is $1,000 or more, the tax-exempt organization is required to file Form 990-T. This is important because, although tax-exempt organizations are generally not taxed on their income, any income that is considered UBTI is taxable, and the IRS requires reporting above that threshold to ensure compliance with tax regulations.

Filing is not necessary if the total positive UBTI is below $1,000, which helps small entities avoid unnecessary paperwork and tax obligations that may not apply to them. Therefore, the correct condition for filing Form 990-T is directly linked to the total positive UBTI amount reaching or exceeding $1,000.