Is Fund Required to Report UBTI to a Tax-Exempt Entity?

[Guest Edward McElroy]

Is a hedge fund required to report UBTI to a tax-exempt investor? Alternatively, is it the tax-exempt investor's responsibility to determine whether income is UBTI? I thought there was a proposal about 5 years ago that would have required funds to report UBTI, but the proposal was never adopted. Any thoughts? Thanks. Ed

[Kirk Maldonado]

What did the disclosure document (given to prospective investors) say about this issue?