FIN-047: Compliance with Federal, State, and Local Tax Regulations

Date: 05/06/2016 Status: Final
Last Revised: 05/02/2018
Policy Type: University
Oversight Executive: Vice President for Finance
Applies To: Academic Division, the Medical Center, and the College at Wise.
Reason for Policy:

The University is committed to complying with federal, state and local tax regulations; this policy identifies the University Units responsible for tax compliance and delineates their scope of responsibility.

Definition of Terms in Statement:
  • University Units:

    Schools and departments within the University, typically represented by a five digit numeric code (i.e., organization code) in the University’s Integrated System.

Policy Statement:

The University must comply with applicable federal, state, and local tax regulations. In that regard, the Director of Financial Operations has institutional responsibility for compliance with tax regulations. Responsibility for specific operational tax processing and records retention has been delegated to certain University Units as below:

University Unit Responsible

Tax Processing and Records Retention

Payroll Services*

Form W-4 and VA-4: Payroll Tax Withholding for Employees

Form W-2: Wage and Tax Statements for Employees Form Reporting

University Human Resources

Form 1042-S: Foreign National Tax Withholding and Reporting

Taxable Fringe Benefits for Employees Reporting

Procurement and Supplier Diversity Services*

Form 1099: Reporting various types of income other than wages, salaries, and tips

Student Financial Services

Form 1098-T: Education Tax Credits

Student Loan Interest Reporting

Financial Reporting and Operations*

Unrelated Business Income

Tax-Exempt Bond Compliance, Private Use

Filing for Credit Payments for Build America Bonds

Commonwealth of Virginia Sales Tax Filing

Treasury Management

Bond Compliance

* These units are under the direction of the Assistant Vice President for Financial Operations.

  1. Providing Tax Advice:
    The University does not provide personal tax advice to its employees, students, or donors. Tax information, such as tax publications and forms, and/or other references on websites, may be provided for general information about various tax topics. However, it is not meant to represent tax advice and it should not be assumed to be error free. If in doubt, individuals should contact the appropriate tax authority (e.g., Internal Revenue Service, Virginia Department of Taxation, Charlottesville City Treasurer, or Albemarle County Finance Department), a tax accountant, or an income tax service.

Related Information:

For additional information, see Tax Compliance.

Major Category: Finance and Business Operations
Next Scheduled Review: 05/03/2021
Approved by, Date: Policy Review Committee, 05/06/2016
Revision History: Updated 5/2/18.
Supersedes (previous policy):
V.A.4, Tax Informaton to Employees and Degree Candidates