Many nonprofits rely on gambling activities to bring in much-needed revenue.
IRS publication 3079 covers related taxes and other issues in detail. This comprehensive publication discusses UBIT, recordkeeping, filing requirements, and contains sample spreadsheets that can be used to document games played, receipts per game, and bingo inventory and receipts. Publication 3079 provides an excellent insight into the Service's approach and likely position on technical issues. It also gives organizations and their tax advisers the opportunity to conduct self-audits to insure compliance before the IRS arrives. This is important because review of exempt gaming activities is a high audit priority.