|Things to Know:
- IU Unrelated Business Income Tax Web-page
- Indiana University (IU) is subject to Federal income tax on the income resulting from activities that are not related to its exempt purpose of teaching and research.
- The Form 990-T, Exempt Organization Business Income Tax Return is filed annually with the Internal Revenue Service.
- Departments wishing to engage in a new revenue producing activity [or continue unapproved existing activities] should complete the Revenue Producing Activities Questionnaire (RPAQ).
- The Tax department will analyze the activity for exposure to the tax on Unrelated Business Income (UBI). Departments subject to the tax should budget for a tax of 35% on the net unrelated income of the activity.
- Remember, the IRS is concerned with how the funds are generated instead of how the funds are used!
- IRS Publication 598 Tax on Unrelated Business Income of Exempt Organizations: http://www.irs.gov/pub/irs-pdf/p598.pdf
Please contact FMS Tax Department, firstname.lastname@example.org for more information.
See CATS Activity: Revenue Producing Activity (RPA)