Sorry, but I'm just catching up on my mail.    :-)
 
The issue of the IRS looking into the business affairs of colleges and
universities has been a hot topic in the Student Services area of higher
education.  Look for the IRS to use the UBIT (Unrelated Business Income Tax)
to hit educational institutions (especially athletic departments) hard in the
next few years as Congress looks for ways to balance the budget by tightening
tax compliance.  The IRS has always contended that much of athletics, student
unions, and residence life operations are unrelated to the educational
mission of the institution.
 
Mike Breitner ([log in to unmask])               Commissioner
Northern State University                                CSCHL-II
Aberdeen, SD                                             (ACHA)
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REPLY FROM: Breitner, Mike
 
Date:         Sun, 16 Apr 1995 10:56:40 -0400
Reply-To:     "Robert L. Dunn" <[log in to unmask]>
Subject:      Re: Why College Players don't get paid
 
Michigan is currently battling the IRS over what is and isn't taxable income.
The IRS says our department oews over $7 million, while we claim they owe us
a refund.  It appears as if we're the test case in seeing what piece of the
athletic (and other major events on campus) pie the IRS can take.  They don't
seem to believe that all of this fits into the education goals of
universities.  We'll have to see how this ends up, as we spent most of last
summer and fall being audited.  I guess they see 105,000+ coming into
Michigan Stadium six times a year and see money they should have.