New Proposed IRS Rules Regarding UBTI (unrelated business taxable income) under IRC section 501(c)(9) with respect to VEBAs

The Department of Treasury has a proposed regulation providing guidance on how certain organizations (like VEBAs) that provide employee benefits must calculate UBTI.  Previously proposed rules on this topic (published on 2/4/86) have also been withdrawn.  As reflected in a footnote in the Proposed Rule, the IRS has distinguished and may no longer follow the UBTI calculation method reflected in the Sixth Circuit Court of Appeals decision, Sherwin-Williams v. Commissioner.