FL – Taxpayer did not qualify as private trust

The Florida Department of Revenue (department) determined that a taxpayer was not a private trust excluded from the definition of “corporation,” and that its unrelated business taxable income (UBTI) was subject to Florida corporate income tax. In this matter, the department noted that the taxpayer was to continue in perpetuity and was set up to serve charitable purposes, and there was a potentially unlimited class of recipients of trust funds provided these entities served certain qualified purposes. The trust was, therefore, a charitable trust, not a private trust.

Finally, the department stated that Florida does not tax nonprofit organizations, including private foundations, unless they file a Form 990-T. Here, the taxpayer was required to file a Form 990-T, and therefore, the department concluded that the taxpayer should also file a Florida corporate income tax return and pay tax on the UBTI. Technical Assistance Advisement, No. 23C1-002M, Florida Department of Revenue, November 3, 2023, released December 2023