The BSC and other UC Berkeley entities will not tax this grant funding and it will be designated as research funding or income from a non-compensatory research award. We are not required to report this funding on IRS Form W-2 or 1099-MISC and will not send grantees an official tax form. Grantees should contact a tax professional or a local IRS office to determine their individual tax liability. The cost of potential taxes that may be applied by the IRS cannot be included in your proposed project budget.