SECTION 11. RELIANCE

For taxable years beginning after December 31, 2017, organizations described in § 511(a)(2) and trusts described in § 511(b)(2), collectively called “exempt organizations” throughout this notice, may rely on methods of aggregating or identifying separate trades or businesses under § 512(a)(6) provided in this notice until proposed regulations are published. All such organizations may rely on a reasonable, good-faith interpretation of §§ 511 through 514 taking into account all the facts and circumstances when determining whether an exempt organization has more than one unrelated trade or business for purposes of § 512(a)(6). For an exempt organization this also includes using a reasonable, good-faith interpretation when determining:

• Whether to separate debt-financed income described in §§ 512(b)(4) and 514;

• Whether to separate income from a controlled entity described in § 512(b)(13); and

• Whether to separate insurance income earned through a controlled foreign corporation as described in § 512(b)(17). The use of NAICS 6-digit codes will be considered a reasonable, good-faith interpretation until regulations are proposed.

For taxable years beginning after December 31, 2017, exempt organizations, other than organizations described in § 501(c)(7) (social clubs), may also rely on the rules provided for aggregating income from partnerships in section 6 of this notice until proposed regulations are published. These aggregation rules include any unrelated debt-financed income that is earned through a partnership that meets the requirements of the rules described in section 6 of this notice. The

rules described in section 6 of this notice include:

• The interim rule that permits the aggregation of qualifying partnership interests that meet either the de minimis test or control test into a single trade or business; and

• The transition rule, which allows for aggregating income within each direct partnership interest acquired before August 21, 2018. Finally, exempt organizations may rely on sections 8.02 and 10 of this notice. These sections provide that:

• Income under § 512(a)(7) is not income from a trade or business for purposes of § 512(a)(6); and

• For purposes of calculating UBTI, an inclusion of GILTI under § 951A(a) is treated as a dividend and follows the treatment of dividends under § 512(b)(1) and (4).