International Travel International Travel TrainingTraining

Presented by:Lisa Cotanch, CPA, Director of Tax

Reporting443-8333lcotanch@syr.edu

OverviewOverviewThe Internal Revenue Service now

requires the University to report all “foreign activities” –meaning foreign travel expense- by IRS-mandated global regions.

Domestic v. foreign travel is classified by the location of the activity.

New account codes are in place that correspond to the IRS’s region for all costs related to foreign travel, including transportation, lodging, meals and conference registration costs.

What is “foreign activity”?What is “foreign activity”?Any University activity that is conducted in a

foreign country on a sponsored, non-sponsored, gift, University or other Chartstring.

This includes, but is not limited to, conferences, research travel, and travel for scholarly, athletic , educational, business and other University related matters

This includes long and short term foreign activity

SU Abroad records their own foreign activities

All foreign activity paid for on any University or Sponsored Chartstring must be recorded in the proper account code(s).

To whom does this apply?To whom does this apply?This applies to every person who

travels to a foreign country on University, restricted or sponsored funds:◦All employees (faculty, staff, full time, part

time, temporary, casual, etc.)◦All students (matriculated, non-

matriculated, full-time, part-time, undergrad, grad, doctoral, post-doc, etc.)

◦Non-employees including consultants, board members, trustees, speakers, candidates for faculty, staff or board positions, sub-contractors

◦Student athletes, enrolled or at any point in the athletic recruitment process

What countries does this What countries does this cover?cover?ALL foreign countries, including

Canada & MexicoThe IRS does not require the

University to break down travel to any US states, territories or possessions, including, but not limited to, Puerto Rico, Guam, U.S. Virgin Islands and Samoa

What are “activities”, What are “activities”, anyway?anyway?At this time, the University will report

to the IRS the two foreign activities below:◦Conference registration◦Travel including, but is not limited to:

Airfare Ground transportation (train, taxi, subway,

rickshaw, pony express, hot air balloon, etc.) Vehicle rental, lease, fuel costs, mileage Lodging (hotel, hostel, B&B, park bench, etc.) Meals and snacks (food purchased for

consumption while en route to or from or in a foreign country from a restaurant, street vendor, grocery store, etc.)

Visa necessary for travel to a specific country

What are the travel What are the travel regions?regions? The IRS requires that we break

down foreign activity by the following IRS mandated regions:

Central America/Caribbean (CA/C)East Asia and Pacific (EA/P)Europe (EUR)Middle East and North Africa (ME/NA)Canada and Mexico (C/M)Russia and newly independent states (RUS)South America (SAM)South Asia (SAS)Sub-Saharan Africa (SSA)

For a listing of countries in each region go here .

What accounts do I use to What accounts do I use to properly record our foreign properly record our foreign activities?activities?SU account codes for travel:

◦560720 Travel-Cent America/Caribbean◦560721 Travel-East Asia & Pacific◦560722 Travel-Europe◦560723 Travel-Middle East & N Africa◦560724 Travel-Canada & Mexico◦560725 Travel-Russia & Newly Ind

States◦560726 Travel-South America◦560727 Travel-South Asia◦560728 Travel-Sub-Saharan AfricaFor a listing of countries in each

region go here.

What are the conference What are the conference registration account codes?registration account codes?SU account codes for conference

registration:◦560730 Conference Registration-CA/C◦560731 Conference Registration-EA/P◦560732 Conference Registration-EUR◦560733 Conference Registration-ME/NA◦560734 Conference Registration-C/M◦560735 Conference Registration-RUS◦560736 Conference Registration-SAM◦560737 Conference Registration-SAS◦560738 Conference Registration-SSAFor a listing of countries in each

region go here.

Inactive Travel AccountsInactive Travel AccountsThe following travel accounts are

inactive:◦560701 Travel-Domestic◦560705 Travel – Conferences

Attending◦560707 Travel – Domestic N/SU◦560708 Travel – SU Foreign◦560709 Travel – Non-SU Foreign◦560799 Travel – Other

Domestic accountsDomestic accounts560704 Travel – Local (Syracuse

area only)560706 Travel - Domestic560729 Conference Registration -

Domestic

How do I properly code How do I properly code travel on a multiple point travel on a multiple point trip?trip? Travel is coded according to destination. Multiple account codes must be used on multi-point trips to

ensure proper reporting. Travel account codes include all items previously mentioned

(meals, transportation, lodging) EXCLUDING conference registration

If the ticket(s) for transportation does not break out each leg of the trip, an approximation can be used, simply divide the total cost of the airfare (train fare, etc.) by the number of legs and use that number.

For example, the trip below has 5 travel points. If the cost of the trip is $4444.00, the cost of each leg is $888.80 ($4444 5 = 888.80).

Syracuse to London: Travel – Europe London to Italy: Travel – Europe Italy to China: Travel – East Asia & the Pacific China to Dubai: Travel – Middle East & North Africa Dubai to Syracuse Travel - Middle East & North

Africa

How do I properly code How do I properly code conference registrations?conference registrations?Use the conference registration account

codes only for the actual cost to register for the conference

If the conference is held in a foreign country, the conference registration must be coded to the proper SU foreign conference registration account code

This is true even if the sponsor of the conference is a US based entity, conference registrations are coded to the region in which the conference occurs

Conference registration Conference registration costscostsOnly the actual cost of registering

for the conference should be coded as a conference registration account code. If a conference offers :◦Any optional conference activity that is

not included in the conference registration cost must be coded to their proper account, even if paid for at the time of registration.

◦The purchase of texts, software, materials or supplies for which the University is paying must be coded to their proper account.

◦Purchases related to optional conference activities or purchases may be taxable income to employees. Please contact the Comptroller’s office prior to your trip if you have questions.

What about equipment & What about equipment & supplies?supplies?At this time, equipment and

supplies purchased while on foreign travel does not need to be coded as “foreign”.

This may change in the future, until this happens continue to use the equipment or supply account codes that you would normally use for purchases.

What about travel to the What about travel to the U.S.?U.S.?Travel to the United States or any of

its territories or possessions from a foreign country and return from the United States to a foreign country does not fall under this requirement.

Domestic travel account codes should be used for travel to the United States by all employees, consultants, students or other individuals or groups.

CONTACTSCONTACTSFor Sponsored foreign travel questions,

contact OSA at contacct@syr.edu.For non-sponsored foreign travel

questions concerning account codes or other specifics, contact General Accounting at genacctg@syr.edu.

For questions on using or processing forms, contact Disbursements at disburse@syr.edu.

For questions regarding the taxability of travel and related costs, contact the Comptroller’s Office at comptrol@syr.edu.

Final thoughtsFinal thoughtsThe IRS requirement to break out

foreign travel is not optional, however, the way we do it at SU is up to our own discretion.

Please feel free to suggest process improvements, clarifications, fine tuning, etc.