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anotherdamnyankeehokie anotherdamnyankeehokie OP
Feb 26, 2024 at 07:10 PM ET
Does anyone think that the IRS will wind up taxing the athletes for the
Scholarship $ as well as NIL and any other compensation they received. After all these all became benefits

17 Replies

astrohokiebob astrohokiebob
Tax fraud is/is not an NCAA violation so players can keep playing. Right?
** Edited by astrohokiebob at 2/28/2024, 11:35:33 AM
IB4TECH IB4TECH
The employers will be turning in their documents, so yes.
reestuart reestuart
I'm sure they will to an extent, but if they have to use 100% of that money
to pay for tuition, how much will actually be taxable? They're not really realizing any income in this case. Now, anything above and beyond that will certainly be taxed like regular income. This is when they'll cease having to be actual students. ** Edited by reestuart at 2/27/2024, 8:51:37 AM
anotherdamnyankeehokie anotherdamnyankeehokie OP
I'm no tax accountant but I sure do know from paying taxes that benefits
Can be considered income and if I'm already getting xnil dollars and quote a free education that others are paying $30 to $70,000 for. I sure as heck think the IRS will consider it a benefit. That is a taxable item but I don't know for sure. I'm just speculating here
reestuart reestuart
it's certainly a benefit, but they aren't able to keep it. It's used
100% as a condition of employment in this hypothetical. They are getting paid say $30K, and then they have to give the school that same $30K to play. If they strip the need to be a student, then any of that money is pure income.
PadrosWindup PadrosWindup
How is that different from the income I use to pay my son's tuition?
Get paid to do a job- with NIL, the job us to promote various products and services. Pay gets reported on a W2 or 1099. Employee is responsible for the tax payments to the IRS. How the employee spends the remainder, be it on tuition or cocaine, is his business.
reestuart reestuart
If tuition is considered income, the athlete has to use 100% of that to
to pay back to the school to play. The NIL is 100% taxable, and has nothing to do with this.
H
Hokie83
Absolutely they will...
S
Stech
Why wouldn’t they if they are employees?
PadrosWindup PadrosWindup
That is the beauty of NIL income.
Get the NCAA out of trying to regulate player income. Let the IRS deal with it. NIL cooperatives would be wise to supply competent tax services. There will be a time when SEC programs turn each others' players in for tax evasion, the way they used to turn each other in to the NCAA for recruiting violations.
S
Stech
Last statement made me laugh , each school will staff former IRS agents 🤣
reestuart reestuart
yeah, the whole tax evasion theory will be a non-story.
1
133966Hokie
Wait - are you staying that paying taxes on these benefits will
be a non-story and won’t happen?
reestuart reestuart
No, they'll pay taxes on actual income.
PadrosWindup PadrosWindup
An you imagine Kentucky and Louisville collectives turning each other in
To the IRS for tax audits? It would be like the list 15 minutes of Goodfellas. Bodies turning up in trash dumpsters and refrigerator trucks. Squealers going into witness protection. John Calipari smashing a telephone after his compadre gets pinched. Bobby Petrino sitting in Club Fed, slicing garlic with a razor blade, waiting for the STD he got from that volleyball player to destroy his brain. ** Edited by PadrosWindup at 2/27/2024, 6:55:52 AM
T
tarheelblue
Yes. The IRS rules on employee compensation are quite clear
V
vtfaninnc
Yes, if they are employees. The first $5,250 per year is exempt.