[Mathreu] tax info.

[Kevin James]

Hi all,

A few of you have written concerning how to report your REU income.  
Below is an email sent to me earlier in the year on this issue.  I hope 
this helps.

-kevin

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To All REU (SURE) Principal Investigators:

During past recent years Clemson University has issued a 1099 to 
students who have earned at least $600 while participating in an REU 
(SURE) program. After the 2004 calendar year one of the participants 
approached the IRS about the legality of this being 1099 reportable. The 
IRS in turn "challenged" Clemson's stance on this. The IRS "holds that 
these recipients are awarded a scholarship or fellowship and are not 
considered employees of the University. None of the services have been 
considered to be services as an employee. Any amount paid or allowed to, 
or on behalf of, and individual to enable him to pursue studies or 
research primarily for their benefit are considered (by the IRS) to be 
amounts received as a scholarship or fellowship."

As a result, Clemson University has determined that a 1099 will not be 
issued for these participants. One of our principal investigators has 
requested that we make this information know to all of the REU 
investigators so that now and in the future they can inform the 
participants of this. Taxability of scholarships and fellowships is 
subject to the individual circumstances and uses of those funds by 
recipients. Individuals should consult their tax advisors in determining 
what amounts, if any, are taxable. It would be advisable to include this 
disclaimer on the REU application form

We do not believe this is a detriment or burden to the students but 
should be a welcome change. If you would like a copy of the IRS letter 
or would like to discuss further, please feel free to contact either 
Cathy Tillett, Steve Crump, or Charles Tegen in the Comptroller's Office.

Thank you for your attention to this matter.



 >>>> Roberta Elrod, Director
 >>>> Sponsored Programs Accounting & Administration
 >>>> Clemson University
 >>>> Administrative Services Building
 >>>> Silas N. Pearman Blvd.
 >>>> Clemson, SC  29634-5355
 >>>> Phone:  (864) 656-4352
 >>>> Fax:  (864) 656-0806

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-- 
Kevin James 
Associate Professor 

O-21 Martin Hall
Department of Mathematical Sciences 
Clemson University
BOX 340975
Clemson, SC 29634-0975

phone: (864) 656-6766        
fax:   (864) 656-5230
web:   www (dot) math (dot) clemson (dot) edu/~kevja/