Doug Wilkerson, Ph.D. writes:
>
>        From time to time I have heard that the IRS has taken the position that
>monies coming to an institution to support clinical trials (particular
>Phase III trials) represent unrelated business income.  Indeed, at a recent
>meeting in Clearwater, FL, it was stated that there is now an inspector
>general's opinion to that effect.  Apparently, the logic is that clinical
>trials (particularly Phase III trials) are TESTING, not RESEARCH and therefore
>do not represent the business of most educational institutions (e.g.,
>education, research and service).

I think I read, or heard through the grapevine, that U. Nebraska just settled
with the IRS on a UBIT audit.  Can't recall any of the details of the
settlement, but think I remember that UN had to pay out some hundreds of
thousands of dollars.  This UBIT included issues more than Phase III trials,
but clinical trials were part of the audit.  Anyone from UN on the net that
can give us some details?

Len

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Leonard P. Paplauskas    Assistant Vice President for Research     |
203-679-3173             University of Connecticut Health Center   |
FAX 679-2670             Farmington, CT   06030-5355               |
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xxxxxx@sun.uchc.edu                                            |
xxxxxx@neuron.uchc.edu                                           |
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