The University is a tax-exempt organization under the provisions of Section 115(a) of the Internal Revenue Code and is exempt from federal income taxes on related income. However, many other sections of the federal tax code do apply. The purpose of this site is to provide information to the campus community regarding procedures for identifying and reporting tax issues which may affect Eastern Washington University.
- IRS Form W-2 Wages and Tax Statement (includes taxable travel-related per diem)
- IRS Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans
- Wage payments to non-traditional employees
- IRS Form 1042-S, Foreign Person's U.S. Source Income Subject to Withholding (non-resident aliens)
- IRS Form 8233, Exemption From Withholding on Compensation for Independent (and Certain Dependent) Personal Services of a Nonresident Alien Individual
- Lump Sum Relocation Assistance Authorization Form
- IRS Form W-9, Request for Taxpayer Identification Number (TIN) and Certification
- IRS Form 1099-M, Miscellaneous income
- Honoraria payments to a foreign national
- Questions about sales and use tax
- IRS Form 990-T, Exempt Organization Business Income Tax Return
- IRS Form 1042-S, Foreign Person's U.S. Source Income Subject to Withholding (international student athletes)
- IRS Form W-8BEN, Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding and Reporting (Individuals)
Unrelated Business Income
Unrelated Business Income is defined as gross income derived by an exempt organization from:
(a) an unrelated trade or business
- Includes any activity which is carried on for the production of income from the sale of goods or from the performance of services
- Profit motive, at some point, the activity must produce a profit to be considered a trade or business
(b) that is regularly carried on
- Once a year can be considered regularly carried on, if the intent is to have the same revenue generating event every year (or every two years)
- Duration of the event, focus on the time span or the time it takes to prepare the activity conducted by the university(c) that is not substantially related to the organization's exempt purposes
(c) that is not substantially related to the organization's exempt purposes
- Related to the exercise or performance by such organization of its educational exemption - Related to you as per your mission
- Facts and circumstances determination
To inform University departments of the procedures to identify unrelated business activities.
This section defines unrelated business income and lists the particular statutory exclusions.
PowerPoint Presentation on Unrelated Business Income.
In general, bookstore operations are related activities and not subject to UBIT. The IRS will typically fragment sales into three major categories.
Foreign National Honorarium Procedure
United States statutes restrict types of employment allowed for foreign nationals.
Inviting and Paying an Honorarium to a Foreign National for Academic Activities.
Application for IRS Individual Taxpayer Identification Number.
Exemption from Withholding on Compensation for Independent Personal Services of a Nonresident Alien Individual.