[Code of Federal Regulations]
[Title 26, Volume 7]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR1.511-3]

[Page 143]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 1_INCOME TAXES--Table of Contents
 
Sec. 1.511-3  Provisions generally applicable to the tax on unrelated 
business income.

    (a) Assessment and collections. Since the taxes imposed by section 
511 are taxes imposed by subtitle A of the Code, all provisions of law 
and of the regulations applicable to the taxes imposed by subtitle A are 
applicable to the assessment and collection of the taxes imposed by 
section 511. Organizations subject to the tax imposed by section 
511(a)(1) are subject to the same provisions, including penalties, as 
are provided in the case of the income tax of other corporations. In the 
case of a trust subject to the tax imposed by section 511(b)(1), the 
fiduciaries for such trust are subject to the same provisions, including 
penalties, as are applicable to fiduciaries in the case of the income 
tax of other trusts. See section 6151, et seq., and the regulations 
prescribed thereunder, for provisions relating to payment of tax.
    (b) Returns. For requirements of filing annual returns with respect 
to unrelated business taxable income by organizations subject to the tax 
on such income, see section 6012, paragraph (e) of Sec. 1.6012-2, and 
paragraph (a)(5) of Sec. 1.6012-3.
    (c) Taxable years, method of accounting, etc. The taxable year 
(fiscal year or calendar year, as the case may be) of an organization 
shall be determined without regard to the fact that such organization 
may have been exempt from tax during any prior period. See sections 441 
and 446, and the regulations thereunder in this part, and section 7701 
and the regulations in part 301 of this chapter (Regulations on 
Procedure and Administration). Similarly, in computing unrelated 
business taxable income, the determination of the taxable year for which 
an item of income or expense is taken into account shall be made under 
the provisions of sections 441, 446, 451, and 461, and the regulations 
thereunder, whether or not the item arose during a taxable year 
beginning before, on, or after the effective date of the provisions 
imposing a tax upon unrelated business taxable income. If a method for 
treating bad debts was selected in a return of income (other than an 
information return) for a previous taxable year, the taxpayer must 
follow such method in its returns under section 511, unless such method 
is changed in accordance with the provisions of Sec. 1.166-1. A 
taxpayer which has not previously selected a method for treating bad 
debts may, in its first return under section 511, exercise the option 
granted in Sec. 1.166-1.
    (d) Foreign tax credit. See section 515 for provisions applicable to 
the credit for foreign taxes provided in section 901.