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Campus Administrative Training Series / Bloomington Financial and Administrative Resource Page
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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: CATS 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 engaging in a new revenue producing activity [or continue an 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@indiana.edu for more information.

*BC - Budget Construction