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• Author: Bruce R. Hopkins
• Profession: Leading authority on the law of tax-exempt organizations
• Pages: 441-449

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UBIT

The acronym “UBIT” is frequently used to refer to the unrelated businessincome tax.

UBTI

The acronym “UBTI”is frequently used to refer to unrelated business taxable income.

ultra vires

The words “ultra vires” are Latin for “outside of.” The term is usually applied to dene an act

that is beyond the authority (as dened in its articles of organization)ofanorganization

(most frequently a corporation) to undertake. Thus, an act that is outside of an organ ization’s

powertocommitisanultraviresact,whichthusmaybedeemedbyagovernmentalauthority

to be void. [CU Q 1.29; RE Q 1.20; LI Q 1.35].

unagreed case

Among the situations in which a tax-exempt organizationexamination case will be closed is

the “unagreed case,” in which the exempt organizationhas not signed the appropriate waiver

and acceptance forms or has not corrected ay acts or failuresto act t hatgive rise to any excise

taxes applicable t o it. [AU §5.32(a)].

underpayment

The term “underpayment” means the amount by which a tax imposed by the federal tax law

exceeds the excess of (1) the sum of (a) the amount shown as the tax by the taxpayer on his,

her, or its taxreturn, plus (b ) amounts not so shown previously assessed (or collected without

assessment), over (2) the amount of rebates (such as an abatement,credit,refund,orother

repayment) made (IRC §6664(a)). [CG §10.14].

understatement

Forpurposesoftheaccuracy-related penalties and the tax fraud penalty, the word “under-

statement” means the excess of the amountof the tax required to be shown on a tax return for

atax year overtheamountofthetaximposedthatisshownonthetaxreturn,reducedbyany

Bruce R. Hopkins’ Nonprot Law Dictionary, First Edition. Bruce R. Hopkins.

©2015 Bruce R. Hopkins. Published 2015 by John Wiley& S ons,Inc.