NIL Collectives Are In The IRS Crosshairs

Wild Turkey

Wild Turkey

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The way collectives work is that boosters/schools set up non-profits to fund or help NIL deals for student-athletes and do so by claiming a 501(c) tax exemption. IRS lawyers are saying that many of these collectives operate primarily for nonexempt purposes by serving the private interest of athletes and don't qualify for exempt status and the IRS is starting to crack down.

This really hasn't hit the news yet as the IRS is just testing the water with a few cases but either congress steps in and makes the collectives exempt through law or this is probably going to ramp up pretty quickly.

It will be interesting if the pool of monies dries up substantially if the donations by boosters are deemed not charitable donations.
 
Wild Turkey said:
The way collectives work is that boosters/schools set up non-profits to fund or help NIL deals for student-athletes and do so by claiming a 501(c) tax exemption. IRS lawyers are saying that many of these collectives operate primarily for nonexempt purposes by serving the private interest of athletes and don't qualify for exempt status and the IRS is starting to crack down.

This really hasn't hit the news yet as the IRS is just testing the water with a few cases but either congress steps in and makes the collectives exempt through law or this is probably going to ramp up pretty quickly.

It will be interesting if the pool of monies dries up substantially if the donations by boosters are deemed not charitable donations.
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Yeah, I see where they are coming from...the story is the school can't pay players has to come from NIL, so how does the tax exemption of the school protect it? That said, fuck the IRS
 
fishinabarrel said:
Yeah, I see where they are coming from...the story is the school can't pay players has to come from NIL, so how does the tax exemption of the school protect it? That said, fuck the IRS
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If we are all honest there is nothing charitable that is happening these collectives are hiring independent contractors for services.

Big dollar boosters shouldn’t be writing off their contributions against their taxes and the rest of subsidizing booster egos.

If you don’t give a rats ass about college football why should boosters of tOSU get to pay less tax to the tune of 30mm a year while the deficit is still growing? The non-fans are picking up a portion of that interest carry.

It’s BS when you really think about it.
 
I saw a little piece on Ohio State’s biggest donor. He used to mentor a certain someone and also gave him a plane.
 
antone112 said:
I saw a little piece on Ohio State’s biggest donor. He used to mentor a certain someone and also gave him a plane.
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Wexner isn't even close to Ohio States biggest football donor. His money goes to the school itself mostly for arts and medical field stuff
 
Wild Turkey said:
If we are all honest there is nothing charitable that is happening these collectives are hiring independent contractors for services.

Big dollar boosters shouldn’t be writing off their contributions against their taxes and the rest of subsidizing booster egos.

If you don’t give a rats ass about college football why should boosters of tOSU get to pay less tax to the tune of 30mm a year while the deficit is still growing? The non-fans are picking up a portion of that interest carry.

It’s BS when you really think about it.
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I agree the idea behind it is crazy. However, I'm past the point worrying about who is paying which taxes. Our government collects a ton of taxes, more isn't gonna do shit until they stop fucking up what they already collect

that's as far as I am gonna go as this is dangerously close to spilling over into the hell that is political discussion
 
fishinabarrel said:
I agree the idea behind it is crazy. However, I'm past the point worrying about who is paying which taxes. Our government collects a ton of taxes, more isn't gonna do shit until they stop fucking up what they already collect

that's as far as I am gonna go as this is dangerously close to spilling over into the hell that is political discussion
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Too late, Bro

I get yer IRS hateboner, but this is textbook tax evasion, it just took the gubbamint a minute to catch up with them.
 
Time to release NCAA from their tax-exempt burdens... :rolleyes2:

And start taxing those so-called "student/athletes" on the NIL gravy train! :nod:

:pop2::martini:
 
CorpRebel said:
Time to release NCAA from their tax-exempt burdens... :rolleyes2:

And start taxing those so-called "student/athletes" on the NIL gravy train! :nod:

:pop2::martini:
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Add megachurches to the list
 
Its income....tax it bitches. Lord knows they tax my NIL
 
CorpRebel said:
Time to release NCAA from their tax-exempt burdens... :rolleyes2:

And start taxing those so-called "student/athletes" on the NIL gravy train! :nod:

:pop2::martini:
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I believe the athletes themselves are taxed on what they earn through collective. This is more looking at the collectives themselves and who is donating to them
 
Wild Turkey said:
It will be interesting if the pool of monies dries up substantially if the donations by boosters are deemed not charitable donations.
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i think people over value the tax break.. yes it's a bonus, but for the people that really contribute, they would do it regardless
 
I've been through 4 Federal audits and 1 State audit. And you know how much more money they got from me? Nothing. Not even one penny. Those bastards are relentless when they get their hooks into you. But I figured out really quickly that the best approach is not to give an inch. As long as you have a reasonable position, fight them tooth and nail. It's a stressful situation but your mission should be to cause them some stress too. Hopefully I don't ever have to go through that again. I'm all for Musk cutting the number of IRS personnel. Use tariffs and go to a VAT tax, drop the income tax and allow people under a certain income level to file for a refund of their VAT taxes. That rewards the savers and taxes the spenders. F the IRS.
 
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