Why isn't the IRS investigating the OSU players?

[briankaldenberg]

The IRS has bigger fish to fry.

 

[Section136]

My question is why the Columbus PD isn't arresting Prior for drive with a suspended licence all the time.

He wouldn't be arrested for driving with a suspended liscense, ease up there fella.

 

[okeefe4prez]

I think the use of six to eight new cars over three years is valued more than $5K. Plus the equipment sold would add another $3 or $4K. Also not counted is the $100 handshakes.

The use of the cars would likely be a gift, and a gift isn't taxable to the recipient, it is taxable to the donor if it exceeds certain limits. The hundred dollar handshakes would also be gifts - not taxable to TP.

 

[okeefe4prez]

I think you're overlooking what the tat shop did with the items the players exchanged. Also, didn't this come to light as a result of an investigation into alleged criminal activity? The IRS pursues unpaid taxes on criminal enterprises.

What is the relevance of what the tat shop did with items?

 

[9YRPLAN]

i highly doubt anything he received was in excess of gift limits. I also doubt that he sold items for more than his basis in the property.

 

[tweeterhawk]

What is the relevance of what the tat shop did with items?

The shop may have sold them or somehow did something to realize value from them. Depending on the value, that may be something to be accounted for on tax forms.

In my experience, the IRS likes to go after high-profile targets, whether it is a business, a wealthy individual or a celebrity. There's great publicity value to them to get the prole masses in line and paying their taxes. No coincidence that the media are flooded with IRS news releases about tax prosecutions, settlements, plea agreements in the January-April period.

 

[hawkeye12345]

The use of the cars would likely be a gift, and a gift isn't taxable to the recipient, it is taxable to the donor if it exceeds certain limits. The hundred dollar handshakes would also be gifts - not taxable to TP.

A gift is taxable. There are certainly some loopholes to this but in general anything of value received can be taxed.

 

[HawkeyesWin]

the donor pays the gift tax, not the receipient.

there may be a case that merchandise was payment or 'appearance fee' with the express purpose of generating commerence for the donor.

as much as i would love to see reggie bush, cam newton the O$U cheaters, and the corrupt boosters involved go to prison for cheating more 'honest' programs I don't see the powers that be allowing kids on their favorite teams and the people running state universities go down hard. Heck, if we were really against corruption Washington, DC would be shut down.

 

[RADMAN]

He wouldn't be arrested for driving with a suspended liscense, ease up there fella.

His liscense was reinstated. He had a liscense. He would get a citation if he didn't. IRS is probably looking into it but they don't post what they are doing for all of us to read.

 

[NCHawker]

The use of the cars would likely be a gift, and a gift isn't taxable to the recipient, it is taxable to the donor if it exceeds certain limits. The hundred dollar handshakes would also be gifts - not taxable to TP.

When I think of gift tax I always think of that applied to wealthy individuals..(annual and lifetime exemptions) .are you talking about a gift tax that would be applied to a business donor?

 

[hawkeye12345]

How about the $20,000 to $40,000 in alleged autograph revenue that is now being reported? Is that a large enough sum for some of you?

I still think the IRS, NCAA and every other body that has some sort of authority needs to make an example of this kid. He's a high profile athlete that clearly did something wrong. Throw the book at him, make OSU and him pay the price so as to create a deterrent for future behavior.

 

[DwayneTwill]

Again, no kid is going to be deterred by threat of an IRS investigation.

 

[okeefe4prez]

How about the $20,000 to $40,000 in alleged autograph revenue that is now being reported? Is that a large enough sum for some of you?

I still think the IRS, NCAA and every other body that has some sort of authority needs to make an example of this kid. He's a high profile athlete that clearly did something wrong. Throw the book at him, make OSU and him pay the price so as to create a deterrent for future behavior.

Even if the IRS wants to do something, if that's 20-40k over the course of 3 years, the guy's tax liability is still very low and the IRS would have to figure out a way to track the transactions. IRS sends him a letter to open a proceeding, he sends a check and an amended return for the past years with a butt kissing letter and something to put the IRS on notice he has counsel. That's it. I don't know if you know this, but the government's broke. They literally do not have the resources to go after a kid for a few grand in taxes - if Pryor gets lined up with an agent that will front money and a large firm, the IRS will spend 50x-100x what it will collect from the kid if they want to get really adversarial. The better bet would be a scorned OSU fan in the Ohio Department of Revenue going after him. Uncle Sug has way bigger fish to fry and as a net taxpayer, I don't want to see the resources wasted.