Tax Compliance Guidelines
Unrelated Business Income Tax- BC*

Activity: Unrelated Business Income Tax (UBI) - BC
Financial Policy: Establishing & Modifying Revenue Producing Activities (RPA), FIN-TRE-121
Processing Revenue, FIN-TRE-120
Related Policies: N/A
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: http://www.irs.gov/pub/irs-pdf/p598.pdf

Please contact FMS Tax Department, taxpayer@iu.edu for more information.

See CATS Activity: Revenue Producing Activity (RPA)