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Last Updated: 9/25/2017

UBIT Filing Requirements

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Unrelated Business Income Tax (UBIT)

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Who must file and pay the Unrelated Business Income Tax?​

The Unrelated Business Income Tax (UBIT) applies to income that a nonprofit and/or tax-exempt organization makes from activities that aren't related to its normal business activity.

Tax-exempt organizations doing business in Minnesota that file federal tax return Form 990-T, 1120-C, 1120-H or 1120-POL are required to file Minnesota's UBIT Return (Form M4NP), and pay tax on the Minnesota federal taxable income.

The UBIT rate is 9.8 percent.

When is the return due?

The due date for filing Form M4NP and paying the tax owed follows the federal due date.

​If you file federal form File M4NP and pay tax by the 15th day of the
1120-POL Third month after the end of the tax year
​​​1120-H ​Fourth month after the end of the tax year
​​990-T Fifth month after the end of the tax year
1120-C Ninth month after the end of the tax year

Short-year returns are due by the 15th day of the 3rd month following the month in which the short year ends.

How do I file this return?

You can file your Minnesota UBIT Return

  •  electronically through e-Services
  •  on paper using Form M4NP (includes schedules M4NPA and M4NPI) 

Note: If you file federal Form 1120, file Corporate Franchise Tax Return (Form M4).

Amended Return

If you or the IRS makes changes to your federal return, you must amend your UBIT return within 180 days to reflect the federal changes.

If you amend your return, file a new Form M4NP for that year (including schedules M4NPA and M4NPI). Check the “Amended return” box near the top of the form. When you file, include a copy of your amended federal return or IRS correction notice.

Note: If you don't report the federal changes as required, we'll assess a 10 percent penalty on any additional tax due, plus interest.

What are my payment options?

You can pay this tax electronically or by check. For details, see Make a Payment.