[Mathreu] REU stipends and taxes

[Kevin James]

Hi all,

Please see the email below concerning REU stipends and taxes.

-kevin




---------- Forwarded message ----------
From: Janice Brucke <NATNAT at exchange.clemson.edu>
Date: Tue, Mar 3, 2009 at 10:04 AM
Subject: RE: W-2 forms
To: Kevin James <kevja at clemson.edu>


Kevin- Please see the email below regarding 1099's for REU.

jb

_________________________________
Date: Wed, 05 Apr 2006 13:33:24 -0400
To: sshelby at CLEMSON.EDU, sam Timmerman <sandrat at CLEMSON.EDU>,
       dianas at CLEMSON.EDU, richar3 at CLEMSON.EDU, ahayne at CLEMSON.EDU,
       natnat at CLEMSON.EDU, "Robert L. Taylor" <rtaylo2 at CLEMSON.EDU>,
       Sharon Lynch <jushia at CLEMSON.EDU>, risem at CLEMSON.EDU,
       callie at CLEMSON.EDU
From: Michelle Duncan <schlock at CLEMSON.EDU>
Subject: Fwd: REU stipends, 1099 IRS regulation

FYI.

X-Mailer: QUALCOMM Windows Eudora Version 6.2.1.2
Date: Wed, 22 Mar 2006 13:00:10 -0500
To: Phillip Hughes <phughes at CLEMSON.EDU>, Beth Ann Cushman
<cbeth at CLEMSON.EDU>,
       Michelle Duncan <schlock at CLEMSON.EDU>
From: Barbara Bass <bbass at CLEMSON.EDU>
Subject: Fwd: REU stipends, 1099 IRS regulation
X-Spam-Level:
X-Scanned-By: MIMEDefang 2.45
X-Scanned-By: mail mimedefang 2.52 on 130.127.28.87


X-Sieve: CMU Sieve 2.2
X-Mailer: QUALCOMM Windows Eudora Version 6.2.1.2
Date: Wed, 22 Mar 2006 12:54:30 -0500
To: BARBARA BASS <BBASS at CLEMSON.EDU>
From: "Dr. R. Larry Dooley" <dooley at CLEMSON.EDU>
Subject: Fwd: REU stipends, 1099 IRS regulation
X-Scanned-By: mx3.clemson.edu mimedefang 2.52 on 130.127.11.73
X-Scanned-By: MIMEDefang 2.45
X-Spam-Level:


X-Mailer: QUALCOMM Windows Eudora Version 6.2.0.14
Date: Fri, 27 Jan 2006 13:27:34 -0500
To: dnoneak at CLEMSON.EDU, peterb at CLEMSON.EDU, bstephe at CLEMSON.EDU,
       luis at CLEMSON.EDU, jljc at CLEMSON.EDU, syaping at CLEMSON.EDU,
       kevja at CLEMSON.EDU, dooley at CLEMSON.EDU
From: Roberta Elrod <elrodr at CLEMSON.EDU>
Subject: REU stipends, 1099 IRS regulation
Cc: crumps at CLEMSON.EDU, young at CLEMSON.EDU, ctegen at CLEMSON.EDU,
       bayhi at CLEMSON.EDU, brewera at CLEMSON.EDU, cowarde at CLEMSON.EDU
X-Spam-Level:
X-Scanned-By: MIMEDefang 2.45
X-Scanned-By: mail mimedefang 2.52 on 130.127.28.87

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

----------------------
R. Larry Dooley, Ph.D.
Associate Dean for Research & Graduate Studies
College of Engineering and Science
Rm. 114 Riggs Hall
Clemson University
Clemson, SC 29634-0901
phone: 864-656-3200   Fax: 864-656-7244
business email: dooley at clemson.edu






-- 
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.math.clemson.edu/~kevja/