On 2/15/2024 at 1:36 AM, Jumper_Dad said:

I'd say we'll see the first tax evasion prosecution of any athlete for unpaid taxes within next 18 months. 

It is definitely going to happen, and I'd imagine it won't be pretty. 

On 2/15/2024 at 1:36 AM, Jumper_Dad said:

I'd say we'll see the first tax evasion prosecution of an athlete for unpaid taxes within next 18 months. 

Just what CBB needs.   As far as we know the FBI is still up in their business so might as well get the IRS up in there as well.    Luckily for them, the CIA can only hound you when you are overseas.

On 2/15/2024 at 9:33 PM, Tranquility Base said:

Just what CBB needs.   As far as we know the FBI is still up in their business so might as well get the IRS up in there as well.    Luckily for them, the CIA can only hound you when you are overseas.

The IRS won't be a problem as long as they pay their taxes. Do you think NIL money shouldn't be taxable?

Most of these NIL deals aren't big money.....I've read the average NIL deal is a little over $3700....thus there isn't a lot of tax liability coming along with most of these deals. That being said, some big deals are getting signed, and we are two years in and I haven't heard of any IRS issues yet. There will absolutely be one at some point in time, but if it were going to become a major issue, I'd think we would have seen it happen by now. Most of these big deals will likely have agent involvement, and while not all agents have the best interests of their clients as a priority, agents should be providing at least the advice to take care of tax issues. Parents also need to be involved. 

On 2/17/2024 at 9:32 AM, rjs4470 said:

The IRS won't be a problem as long as they pay their taxes. Do you think NIL money shouldn't be taxable?

Most of these NIL deals aren't big money.....I've read the average NIL deal is a little over $3700....thus there isn't a lot of tax liability coming along with most of these deals. That being said, some big deals are getting signed, and we are two years in and I haven't heard of any IRS issues yet. There will absolutely be one at some point in time, but if it were going to become a major issue, I'd think we would have seen it happen by now. Most of these big deals will likely have agent involvement, and while not all agents have the best interests of their clients as a priority, agents should be providing at least the advice to take care of tax issues. Parents also need to be involved. 

Of course it won't be a problem if they pay them. I'm sure the majority of schools that have collectives or a cohesive NIL program are making sure all deals ran that they are aware of are accounted for. They probably have accounts even set up or arranged to help with the tax issues and filing of taxes. The issue will be the player or parent or adviser that takes on side deals on their own and making sure taxes are accounted for on those as well. 

Think Johnny Manzel signing items in a hotel room for a duffle bag of cash. How many players are going to file a tax return on that money?

I hope no one gets in trouble, but I'm willing to bet that at least one school out there will have an issue with multiple players getting in trouble for tax evasion, sooner than later. If we don't see a major tax scandal tied to NIL in the next three years, I will be shocked.

8 hours ago, Jumper_Dad said:

Of course it won't be a problem if they pay them. I'm sure the majority of schools that have collectives or a cohesive NIL program are making sure all deals ran that they are aware of are accounted for. They probably have accounts even set up or arranged to help with the tax issues and filing of taxes. The issue will be the player or parent or adviser that takes on side deals on their own and making sure taxes are accounted for on those as well. 

Think Johnny Manzel signing items in a hotel room for a duffle bag of cash. How many players are going to file a tax return on that money?

I hope no one gets in trouble, but I'm willing to bet that at least one school out there will have an issue with multiple players getting in trouble for tax evasion, sooner than later. If we don't see a major tax scandal tied to NIL in the next three years, I will be shocked.

I absolutely believe some player(s), and some school(s) is going to have a tax issue at some point in time. It's inevitable. People have tried to beat taxes since taxes became a thing. My main point was that it was made to sound like unionizing would suddenly create the need for those who secure these deals to have to start paying taxes. That's not true because they already have to pay taxes on NIL deals. If anything, I think NIL actually makes it less likely we'll see a big tax issue, because these deals are now mostly on the up and up and publicly visible. In the past, when these deals were prohibited, players were certainly trying to hide their tax liability because publicizing the deal would affect their eligibility.

7 hours ago, rjs4470 said:

I absolutely believe some player(s), and some school(s) is going to have a tax issue at some point in time. It's inevitable. People have tried to beat taxes since taxes became a thing. My main point was that it was made to sound like unionizing would suddenly create the need for those who secure these deals to have to start paying taxes. That's not true because they already have to pay taxes on NIL deals. If anything, I think NIL actually makes it less likely we'll see a big tax issue, because these deals are now mostly on the up and up and publicly visible. In the past, when these deals were prohibited, players were certainly trying to hide their tax liability because publicizing the deal would affect their eligibility.

The biggest change with this ruling would be that if the IRS considers them employees, all compensation from the school could be taxed. Free rooms, tuition, books, supplies, tutoring services even some clothing could be taxable income to the IRS. Imagine a third string lineman with no NIL having to pay taxes on his "Full Ride."