The Internal Revenue Service (IRS) has issued corrections to previous regulations under section 512 of the Internal Revenue Code. These corrections address errors in the guidance on how exempt organizations subject to unrelated business income tax determine and calculate unrelated business taxable income. The corrections modify specific language in the original document to clarify the regulations. These changes are effective from February 12, 2021, and they apply to the regulations initially published on December 2, 2020.
Simple Explanation
The IRS fixed some small mistakes in the rules about how certain organizations should handle taxes for businesses that aren't their main job. These changes make it easier for them to know how to deal with such taxes correctly.