UBTI Question

[Lou S.]

Had an account call me this morning. They have a client with a partnership inside retirement plan that is subject to UBTI.

In the past, the partnership has generated Net Operating Losses (NOL) so no UBTI was owed so they did not file a 990-T.

This year they are going to have a substantial gain and will owe UBTI taxes.

It looks like they can offset gains by Net Operating Loss carry forwards, Which seem to have different rules pre and post 2018 but can be used to offset some or all of the gain, in perpetuity.

The question is do they have to file past 990-Ts claiming NOL to use these NOLs? And if yes how far can they go back with filings?

If the question is too complicated for a post here on benefits link and you know a CPA who deals with these issues in the California Bay Area, I'd be happy to have my CPA contact that CPA directly as this is a bit out of my area of expertise. I know just enough about UBTI to be dangerous.