RESOLUTION ON TAX LIABILITY FOR HOUSING — June 8, 1986
BOARD OF TRUSTEES OF THE COLLEGE = RESOLUTION ON TAX LIABILITY FOR HOUSING (Board of Trustees meeting, June 8, 1986) (a) Authorizing the President and Vice-President for Business and Financial Affairs to enter into a Closing Agreement with the Director of the Bureau of Internal Revenue for the resolution of outstanding tax liability on housing allowance payments for the period 1982-1985; (b) Authorizing the development and implementation of new housing regulations which would satisfy the College's obligations under IRS regulations and relieve the College of future tax liability. …
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BOARD OF TRUSTEES OF THE COLLEGE = RESOLUTION ON TAX LIABILITY FOR HOUSING (Board of Trustees meeting, June 8, 1986) (a) Authorizing the President and Vice-President for Business and Financial Affairs to enter into a Closing Agreement with the Director of the Bureau of Internal Revenue for the resolution of outstanding tax liability on housing allowance payments for the period 1982-1985; (b) Authorizing the development and implementation of new housing regulations which would satisfy the College's obligations under IRS regulations and relieve the College of future tax liability. WHEREAS, under the terms of their employment contract with the College, faculty members are required to live on campus and are provided on-campus housing or, in lieu thereof, a housing allowance of $425 per month; and WHEREAS, in a ruling dated March 20, 1986 the Bureau advised the College: (a) that housing provided by the College to faculty does not meet the following three tests of Section 1.119-1(3) (b) of the IRS regulations which would make such housing exempt from income taxes: (i) The lodging is furnished on the premises of the employer; (ii) The lodging is furnished for the convenience of the employer, and (iii) The employee is required to accept such lodging as a condition of employment. (b) that subparagraph (iii) is not determined by the terms of a contract, but means that the lodging is required in order for the employee to properly perform the duties of his employment, including being available at all times or he could not perform the services required of him unless he was furnished on premises lodging; (c) that the fair market value of the housing or the allowance paid in lieu of housing is includible in gross income and subject to withholding taxes; and Me Resolution on Tax Liability Page 3 . 5°] Section 2. That the agreement to be concluded include provisions necessary to protect the interests of both the College and members of the faculty; reflect a settlement and terms of payments that ~ take into account the College's ability to meet any required payment obligations on a timely basis; ' Section 3. That be President and Vice President for Business and Financial Affairs are authorized to develop and implement new . housing regulations which would satisfy the College's obligations under IRS regulations and relieve the institution of any future . liability with magpect co tas on housing for facuty members; CERTIFICATION The undersigned does hereby certify that the fore a true and exact,copy of a resolution of the Board of Trustees of the College of the Virgin Islands adopted at its meeting on June 8 __, 1986, as recorded in the minutes of said meeting. : # . Secretary of the Board