Even though an organization is recognized as tax exempt, it still may be liable for taxes on its unrelated business taxable income (UBTI). An exempt organization that has $1,000 or more in gross income from an unrelated business must file the appropriate forms and pay the tax due.

The Internal Revenue code section under which an organization's exempt status is addressed will directly impact what constitutes unrelated business taxable income (for example 501 (c)(3) as opposed to 501 (c)(6)). Different code sections have different rules for the definition of UBTI.

In addition, organizations that lobby can either deduct the portion of their member's dues that are tax deductible, or they can calculate the applicable lobby tax that is to be paid with Form 990 - T.