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WVU-CO-27 Taxation of Unrelated Business Income Activities – Non-Research Activities Policy

 

West Virginia University Policy
Division of Administration and Finance


WVU-CO-27

TAXATION OF UNRELATED BUSINESS INCOME
ACTIVITIES-NON-RESEARCH ACTIVITIES POLICY

PURPOSE

The purpose of this policy is to identify which activities generate unrelated business income (UBI) and are therefore subject to federal taxation on net income.

SCOPE

This policy applies to all colleges and departments of West Virginia University, including those on the regional campuses.

POLICY

Activities which generate unrelated business income (UBI) are subject to federal taxation on net income. Colleges/Departments beginning new revenue generating programs must contact the Controller’s Office to determine whether the activity is subject to federal taxation as UBI. It is the responsibility of the colleges/departments to ensure appropriate funds are available for payment of the federal tax liability based on net income to be remitted with the University’s tax return following the end of each fiscal year.

PROCEDURE

Procedure development rests with the Controller’s Office – Tax Accounting.

RESPONSIBILITY FOR IMPLEMENTATION

The responsibility for implementation of this policy rests with the Dean or Director of each college, department, or unit. The Controller’s Office, at 293-4002 or P.O. Box 6001, is available to answer questions or provide additional information regarding this policy.

RESPONSIBILITY FOR INTERPRETATION

The responsibility for interpretation of this policy rests with the Controller, West Virginia University.

Effective Date: September 10, 1998
Approved By: Scott C. Kelley, Vice President