West Virginia University Policy
Division of Administration and Finance
UNRELATED BUSINESS INCOME – RESEARCH ACTIVITIES POLICY
The purpose of this policy is to identify which research activities generate unrelated trade or business income (UBI) and are therefore subject to federal taxation on net income.
This policy applies to all research activities conducted by the University, including those on the regional campuses.
Research activities normally carried on incident to commercial or industrial operations which generate unrelated trade or business income (UBI) are subject to federal taxation on net income. The Office of Sponsored Programs, with the assistance of the Controller’s Office, will evaluate each proposal before submission to determine whether the activity is subject to federal taxation as UBI. If deemed to be subject to UBI at the proposal stage, the federal tax liability will be estimated and included as a component of the budget. If an award is made, the actual tax liability will be determined and paid at expiration of the award.
Procedure development rests with the Controller’s Office – Tax Accounting and the Office of Sponsored Programs.
RESPONSIBILITY FOR IMPLEMENTATION
The responsibility for implementation of this policy rests with the Controller’s Office – Tax Accounting and the Office of Sponsored Programs. 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