Taxable Scenarios Regarding Suppliers
Review this part of the book for tax information when processing payment to suppliers.
In particular, this section will help explain the tax implications of processing payment to a foreign supplier and how to properly report royalty purchases made with a p-card. Payments for royalties to foreign entities are typically subject to U.S. tax withholding under IRS regulations, and universities must ensure compliance by properly identifying and reporting these transactions. Failing to recognize a royalty payment can result in underreporting and potential penalties. The resources within this section will outline how to identify royalty-related purchases, assess withholding and reporting obligations, and outline how to correctly report them to the IRS to maintain institutional compliance.
Policies
Review the below policies related to taxable scenarios regarding suppliers:
- FIN-ACC-55: Foreign Source Gifts, Contracts, and Revenue-Producing Activities
- FIN-ACC-620: Expenditures: Expenses and Reimbursement Under the Accountable Plan
- FIN-PURCH-05: Prohibited Purchases
- FIN-TRE-90: External Agency Agreements
Standards
Review the below standards related to taxable scenarios regarding suppliers:
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IU Indianapolis student analyzing genetics and forensics data.
Checklists
There are no checklists related to this portion of the book at this time. Please check back in the future!
TRAINING MATERIALS
Review the below training materials related to taxable scenarios regarding suppliers:
OTHER RELATED MATERIALS
Review the below other materials related to taxable scenarios regarding suppliers:
- Reference Document: P-Card Information
- Reference Document: SOP-CARD-01: P-Card Roles and Responsibilities Procedure
- Reference Document: Best Practices for P-Card Documentation
- Reference Document: Audits and Suspensions for P-Cards
- Reference Document: Form 1042-S Information
- Reference Document: Tax Treaty Benefit Information
- Reference Document: Foreign National Information System (FNIS) Information
- Reference Document: ITIN Request Information
- Form: W-8BEN-E Information
- Form: W-9 Forms
IU Financial system reports and procedures
There are no IU financial system reports and procedures related to this portion of the book at this time. Please check back in the future!
