20.60 - Unrelated Business Income (Tax)

Owner:

• Email: controller@uidaho.edu

Last updated: May 7, 2024

A. Purpose. This policy addresses the requirement for the University of Idaho to report and manage unrelated business income as defined by the Internal Revenue Service (IRS), ensuring compliance with tax regulations and accurate reporting of revenue generated from activities not substantially related to the University's exempt purposes.

B. Scope. This policy applies to all University units engaged in revenue-producing activities that may result in unrelated business income, as well as personnel responsible for financial management and reporting within those units.

C. Policy. The University is required to file an annual tax return to the IRS and the State of Idaho reporting all unrelated business income, and thus an annual review of all revenue generated by University units must be done in order to ensure accurate reporting. To the extent an activity results in tax to the University, the units generating taxable revenue are responsible for the payment of any tax due.

D. Procedure. Prior to engaging in any new income producing activity, units are required to complete a questionnaire provided by General Accounting to make a determine the status of income derived from each activity. General Accounting may also require units to update the questionnaire information for existing activities. The questionnaire is available at General Accounting.

A spreadsheet will be sent out annually to all units requiring them to review all revenue to determine if it is related or not to the exempt purpose of the university. The spreadsheet is to be filled out by department personnel and returned to General Accounting by the stated deadline.

E. Contact information. Questions regarding unrelated business income should be directed to General Accounting at gnrlacctg@uidaho.edu.

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