Exempt Organizations has begun a compliance project of colleges and universities, one of the largest components of the tax-exempt sector. The compliance project begins with a compliance questionnaire to 400 colleges and universities. The information gained from these questionnaires will give us a better understanding of how colleges and universities:

• Report revenues and expenses from taxable trade or business activities on Form 990-T, Exempt Organization Business Income Tax Return;
• Classify activities as exempt or taxable activities;
• Calculate and report income or losses on Form 990-T;
• Allocate revenues and expenses between exempt and taxable activities;
• Invest and use endowment funds; and
• Determine types and amounts of executive compensation.

Additional information:

• Questions and Answers about Compliance Questionnaire
• Compliance Questionnaire - Colleges and Universities
• Instructions - Compliance Questionnaire - Colleges and Universities
• Cover letter
• News release