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"While it is unclear how the IRS may apply its 16-year-old guidance to the modern-day virtual trade show and whether its guidance today might be different, taken literally, it would seem a virtual trade show of any kind would not qualify for the existing trade show safe-harbor exception from UBIT,” said association attorney Jeff Tenenbaum, managing partner of Tenenbaum Law Group. “That being said, that does not automatically mean that virtual trade show income would be taxable as UBI; it would simply be ineligible for the safe harbor and subject to the standard three-prong UBIT analysis. Moreover, while the UBI exception for corporate sponsorship income does not apply to ‘qualified conventions and trade shows,’ if virtual conferences are deemed to not fall within that definition, then it may well be possible to restructure some of these business relationships as corporate sponsorships. In short, this is clear as mud."
Unprecedented Leadership During Unprecedented Times is the focus of the 2020 Association Leadership Forum, created by ASAE, which takes place at PlanetIMEX on Thursday 15 October. The programme has been developed to provide high level insights into the strategies association executives can employ to navigate a business environment that continues to change and challenge.
As associations pivot to virtual trade shows, meeting executives must understand how unrelated business income tax regulations now apply to exhibit revenues—and how to adapt sponsorship opportunities to minimize taxation.
Tenenbaum Law Group’s Managing Partner Jeff Tenenbaum is quoted extensively in this article in CEO Update about the uptick in association merger activity during the pandemic.
Tenenbaum Law Group Managing Partner Jeff Tenenbaum’s article, Top 10 Legal Q&A for Association Events in the COVID-19 Era: Strategies for an Evolving Landscape, published in AMC Institute’s Money Matters newsletter
AMC Institute’s Money Matters
Attorney Jeff Tenenbaum, with Tenenbaum Law Group, who represents both boards and executives in employment matters, said he has not seen contract renegotiations yet, but
expects to. “What I could see, if I was representing the executive, is kind of a deferral, where the executive agrees to take a cut in compensation this year. But assuming the association, by whatever metric
they agree to, is back on track a year from now, the executive would have the opportunity to earn that back.” CEOs working without a contract are subject to pay reductions for any non-illegal
reasons, Tenenbaum said.
Jeffrey Tenenbaum, managing partner at the law firm Tenenbaum Law Group PLLC, was quoted extensively in this article about association meeting cancellations in connection with the COVID-19 pandemic in AssociationSuccess.org:
"Negotiations between associations, hotel operators and convention centers and their attorneys are rising to front and center in many situations now regarding annual conferences and meetings as a result of COVID-19.
Jeff Tenenbaum, managing partner of the Tenenbaum Law Group, has been at the forefront of the issue while the stakes continue to rise for both sides. He spoke in late March about how all of this is playing out."
Jeffrey Tenenbaum, managing partner at the law firm Tenenbaum Law Group PLLC, was quoted in this article in Medscape Medical News:
“Another factor many professional societies face is the specter of large cancellation fees from the hotels and convention centers they'd booked for their meetings. The bill could come within 24 hours after cancellation and be in the hundreds of thousands of dollars or even seven figures, Jeffrey S. Tenenbaum, managing partner of Tenenbaum Law Group in Washington, DC, told Medscape Medical News in an email.”
Medscape Medical News
Jeffrey Tenenbaum, managing partner at the Washington, DC-based law firm Tenenbaum Law Group PLLC, was quoted in this article in The Palm Beach Post:
And the relationship between FPL and the not-for-profit groups it supports could put them in the crosshairs of the IRS, an attorney who specializes in non-profits told The Post.
“This is definitely problematic from a federal tax law perspective,” attorney Jeffrey Tenenbaum said.
“When these not-for-profit groups take actions that benefit private companies such as FPL, rather than the public or a disadvantaged group, the IRS could review their nonprofit status, which allows them to operate without paying federal income taxes,” Tenenbaum said.
The Palm Beach Post
Jeffrey Tenenbaum, head of the nonprofit practice at the DC-based law firm Lewis Baach Kaufmann Middlemiss PLLC, was quoted in this article in The Chronicle of Philanthropy on the steps nonprofit organizations can take to mitigate risk associated with fundraising.
The Chronicle of Philanthropy