This. I know it's cool to hate the IRS but I don't personally know anyone who was wronged or harassed by them. My dad has been filing his own taxes for well over 50 years, including side farming, and never even been audited. I also have never been audited. My only experience with being audited was they corrected an error I had made on a stock sale that didn't change my amount. Sent me a nice letter that had my stomach in knots before I fully read it.
I found this article interesting about the IRS and NIL
- Thread starter Tuco Salamanca
- Start date
Well then, they are obviously fine and nothing to fault them for because you and your Dad haven't been hassled.
Sadly it's a myth in my opinion that these new IRS agents will be concentrating on the big guys. Those big guys already get plenty of attention, the IRS isn't stupid and they've audited the big guys because that's where the big bucks have been. These new agents will extend the audits down into the lower echelons.
You know, the more I think about it you're right. I should definitely get worked up about something that goes directly against my personal experiences since some random people on the internet have told me otherwise.
It’s about making sure individuals and corporations understand the IRS’s interpretation of the tax code as it pertains to NIL. They issue statements like this whenever there seems to be some confusion or gray area on a topic.
FFS, there are at least 2 entities that are currently set up as charitable entities that are taking tax deductible donations and the distributing those donations to the athletes at the respective school. The entire purpose of the statement was to put these entities on notice that the IRS will no longer be approving these collectives as charitable entities and that the ones that have been approved will have their approvals revoked during subsequent audits.
Yes there was and is confusion on the issue, but the point of the article, not the IRS statement, is that this may have an effect on the donations to the collectives, since the IRS has made it clear that the donations are not going to be tax deductible.
Except, that's not what the article says. The article states that payments to a Collective won't be deductible as charitable donations - which affects the average Joe who's looking to support the athlete as opposed to the business who's looking for a marketing representative (i.e. Decoldest Crawford). From what I understand, there are Collectives that are arranging marketing opportunities for the athlete. If a business is making a payment to the Collective in exchange for marketing services, that will be tax deductible - just not as a charitable donation. The Collective will now have to pay income taxes as a for-profit business.
It also appears that there are some Collectives that have been absorbed by some long-standing university Foundations who provide scholarships & other student related items. That will be a whole different issue for the IRS & Foundations to deal with. Payments to the Foundations are typically tax deductible. I believe The OSU & aTm have legitimate Foundations involved with NIL.
Much of this thread is what they call a “nothing burger”.
Businesses would rather deem any NIL expense as “advertising” anyway. It’s a much better deduction.
As for personal donations - in order to be qualified as a charity and allow donors to take a charitable contribution deduction on their personal tax returns, the donation has to serve a charitable purpose. All these co-ops have to do now is actually find a charitable cause to make the entities mission. The Clemson’s TigerImpact could have a mission to help keep Siberian tiger from being endangered and what better people to have as speakers for this drive then “ Clemson tiger football players”. And ofcourse it’s totally legal to pay expenses for such services to the football players
The only switch up now is part of the money people give does actually need to go to helping Siberian Tigers. But on the flip side, you’ve also now added to your target market for people who are willing to contribute that actually want to help Siberian Tiger
There are so many ways to work around this, that it’s not even worth mentioning. I think some of you are looking for a big A-ha moment here but it’s not. It’s basically a big nothing burger
Businesses would rather deem any NIL expense as “advertising” anyway. It’s a much better deduction.
As for personal donations - in order to be qualified as a charity and allow donors to take a charitable contribution deduction on their personal tax returns, the donation has to serve a charitable purpose. All these co-ops have to do now is actually find a charitable cause to make the entities mission. The Clemson’s TigerImpact could have a mission to help keep Siberian tiger from being endangered and what better people to have as speakers for this drive then “ Clemson tiger football players”. And ofcourse it’s totally legal to pay expenses for such services to the football players
The only switch up now is part of the money people give does actually need to go to helping Siberian Tigers. But on the flip side, you’ve also now added to your target market for people who are willing to contribute that actually want to help Siberian Tiger
There are so many ways to work around this, that it’s not even worth mentioning. I think some of you are looking for a big A-ha moment here but it’s not. It’s basically a big nothing burger
