Approval Required for all Legal Service Payments from Office of
Legal Counsel
According
to University
Financial Policy No. 2705, Retention of Outside Counsel:
- Non-University
attorneys may not be retained by departments, divisions and
schools on University related matters. The decision to seek
such representation must be made by the Office of Legal Counsel.
The Office of Legal Counsel will negotiate the terms and conditions
under which outside counsel represent the University.
- All such
attorneys must report and be responsible to the General Counsel
of the University.
Payment
for Services Performed in the United States
Payments made
to attorneys or corporations for legal services, regardless of dollar
amount, which have been provided in the United States, must be reported
to the Internal Revenue Services on IRS Form 1099MISC.
Payments
for Services Performed in Foreign Countries
US Citizens,
Permanent Residents, or Resident Aliens for tax purposes
- According to IRS regulations, services performed by a US Citizen
or US Resident Alien in a foreign country, regardless of dollar
amount, are both taxable and reportable. For example, if a US Citizen
performs legal services for your department while in France, The
University would be required to report the individual's income and
present the worker with an IRS Form 1099MISC at calendar year end.
Nonresident
Aliens - According to IRS regulations, payments to Nonresident
Aliens are neither taxable nor reportable provided that ALL of
the legal services were performed by the individual outside of
the United States. For example, if a French citizen performs a
service for your department in any foreign country, the individual
will not receive any IRS tax documents from The University regardless
of the amount paid to the individual.
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Office of the Comptroller