What does it mean to be a tax-exempt organization under IRC Section 501(c)(3)?
As a tax-exempt organization under IRC Section 501(c)(3), Carnegie Mellon is responsible for complying with appropriate federal and state corporate tax laws: • The University is exempt from federal and state income tax on revenue from activities within its exempt mission; • The University is exempt from state sales tax on sales and purchases within its exempt mission (where applicable); • State sales tax is collected and remitted on sales of certain goods in the University bookstore and other “retail like” services available to the public; and In addition, as an employer and provider of student financial aid, CMU is responsible for the correct tax withholding and reporting of the income of its faculty, staff, students, employees and independent contractors of the Internal Revenue Service and state tax authorities.
