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) ------------------------------------------------------------------------------ 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.