Tax Compliance Guidelines
Unrelated Business Income Tax- BC*

Activity: Unrelated Business Income Tax (UBI) - BC
Financial Policy: FIN-TRE-VI-121, Establishing & Modifying Revenue Producing Activities (RPA)
FIN-TRE-VI-120, Processing Revenue
Related Policies: See CATS Activity: Revenue Producing Activity (RPA)
Additional Forms: Revenue Producing Activity On-Line Submission Site
Revenue Producing Activity Questionnaire (RPAQ)
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:

Please contact FMS Tax Department, for more information.