I need a brief reply for the discussion topic with a solution, too i

(About how could you, as the manager, present this information more clearly to your new boss? to discuss the concept of unrelated business income (UBI) and unrelated business income tax (UBIT). )

"If I was the financial manager in this situation before I did anything with the museums financial reports, I would research and provide hard documentation that backs up my suggestion that the gift shops income is unrelated to the tax exempts mission and that it should be reported separately. After conducting such research, I would then sit the new boss down and provide them with the IRS publication 598. In chapter three it explains that unrelated business income (UBI) is any income that derives from a trade or organization that regularly conducts an exempt organization and is not directly related to the performance of the organization. Unrelated business taxable income (UBTI) is the gross income that derives from any unrelated trade or business regularly conducted by the exempt organization, less the deductions directly connected with carrying on the trade or business. (Internal Revenue Service, 2021). Certain organization activities are not treated as unrelated business income. In chapter three of the IRS publication 598 it clearly states that a museum is considered tax exempt because it is considered educational and there for relies on donations. However, there are several unrelated business income examples listed in chapter three that are not considered to be tax exempt and there for need to be reported separately. One of those examples is the museums gift shop and explains that because the gift shop sells products for an income, their income needs to be reported separately. After showing the new boss all of this information, I would then explain to him or her that it would not be wise to report the gift shops income as income on the museums financial statement. My reason being is because it is considered fraudulent and the IRS will catch this, which could lead to large fines, closing of the museum, and or jail time. If this publication from the IRS still does not change the mind of the new boss, I would then not do the financial report and quit the museum because it is not worth me loosing my license over it."