NIL collectives no longer tax exempt

[Chickadee34]

Looks like the collectives can no longer operate under a 501(c) (3) status. Donation to these collectives will no longer be tax deductible.

IRS addresses whether college NIL collectives further an exempt purpose

A memo from the IRS Office of Chief Counsel advises that an organization that develops paid NIL opportunities for student-athletes will, in many cases, be operating for a substantial nonexempt purpose—serving the private interests of student-athletes—which is more than incidental to any exempt...

www.journalofaccountancy.com

 

[Obliviax]

makes sense. I am not sure why anyone expected it to be tax exempt.

 

[lazydave841]

It wasn't when it was under the table lol

 

[Lion_Backer]

It wasn't when it was under the table lol

I have a feeling that both the earnings and the under the table distribution of those resources may have both been 'tax exempt' in many cases.

 

[voltz99]

Any predictions on who will be the first player charged with tax evasion?

 

[Obliviax]

I have a feeling that both the earnings and the under the table distribution of those resources may have both been 'tax exempt' in many cases.

I know it is a joke but ill-gotten gains are NOT tax-exempt. If you sell drugs, that income is taxable. People are often prosecuted for tax evasion for not reporting income on illegal activities.

IRS Guidance for Thieves, Drug Dealers, and Corrupt Officials

IRS guidance for thieves, drug dealers, and corrupt officials. IRS illegal activities guidance helps taxpayers determine how to report their income.

taxfoundation.org

 

[bvillebaron]

I know it is a joke but ill-gotten gains are NOT tax-exempt. If you sell drugs, that income is taxable. People are often prosecuted for tax evasion for not reporting income on illegal activities.

IRS Guidance for Thieves, Drug Dealers, and Corrupt Officials

IRS guidance for thieves, drug dealers, and corrupt officials. IRS illegal activities guidance helps taxpayers determine how to report their income.

taxfoundation.org

Yeah that’s like the “initiative” I heard about where the IRS was reminding thieves and drug dealers to self-report their profits and fair market value of the stolen property on their tax returns and to pay the tax due. As my late father always said, you just can’t fix stupid.

 

[step.eng69]

Any predictions on who will be the first player charged with tax evasion?

Who ever Danny DeVito is representing as his lawyer.

 

[Obliviax]

Yeah that’s like the “initiative” I heard about where the IRS was reminding thieves and drug dealers to self-report their profits and fair market value of the stolen property on their tax returns and to pay the tax due. As my late father always said, you just can’t fix stupid.

yep. It is really just a way to tack on more charges to establish a better negotiating position for prosecutors. And sometimes they can't "prove" wrongdoing but can get people for tax evasion if there is income but no taxes paid. That is why there is money laundering and how they caught a lot of drug dealers back in the 80s and 90s.

 

[tlbakernc]

Why in the hell would of ever been tax exempt???

 

[RickinDayton]

Looks like the collectives can no longer operate under a 501(c) (3) status. Donation to these collectives will no longer be tax deductible.

IRS addresses whether college NIL collectives further an exempt purpose

A memo from the IRS Office of Chief Counsel advises that an organization that develops paid NIL opportunities for student-athletes will, in many cases, be operating for a substantial nonexempt purpose—serving the private interests of student-athletes—which is more than incidental to any exempt...

www.journalofaccountancy.com

What

Looks like the collectives can no longer operate under a 501(c) (3) status. Donation to these collectives will no longer be tax deductible.

IRS addresses whether college NIL collectives further an exempt purpose

A memo from the IRS Office of Chief Counsel advises that an organization that develops paid NIL opportunities for student-athletes will, in many cases, be operating for a substantial nonexempt purpose—serving the private interests of student-athletes—which is more than incidental to any exempt...

www.journalofaccountancy.com

So are we to assume that the money that the "student-athletes" receive is also taxable, except for that which is in turn given to a charitable organization in the athletes name?

 

[PSU_Nut]

Why in the hell would of ever been tax exempt???

Because they operated under the guise of charity work. You would donate to the cooperative that would pay the student athlete to do charity work. Thankfully the IRS saw through the sham.

 

[Online Persona]

Because they operated under the guise of charity work. You would donate to the cooperative that would pay the student athlete to do charity work. Thankfully the IRS saw through the sham.

At least in basketball many of these athletes do a lot of their work at the charity stripe. Wonder if the IRS would reconsider that?

 

[Marylovesthelions]

I know it is a joke but ill-gotten gains are NOT tax-exempt. If you sell drugs, that income is taxable. People are often prosecuted for tax evasion for not reporting income on illegal activities.

IRS Guidance for Thieves, Drug Dealers, and Corrupt Officials

IRS guidance for thieves, drug dealers, and corrupt officials. IRS illegal activities guidance helps taxpayers determine how to report their income.

taxfoundation.org

Al Capone?