Why isn't the IRS investigating the OSU players?

[hawkeye12345]

If they sold something and failed to report it on their taxes then it's a clear violation of the tax code.

I've never understood why the IRS doesn't get involved in stuff like this. If there is one agency that could put an end to the corrupt nature of NCAA and high school sports its the IRS and yet they never seem to get involved.

Why?

 

[okeefe4prez]

Amounts are often below threshold for filing a tax return. $5k doesn't trigger a requirement to file a return if that's your only income.

 

[PhoenixHawk]

Interesting point. I wonder if their "scholarship" benefits don't fall under the tax code somehow, so the actual "income" they are receiving from selling junk and boosters is not enough to lift them up to the level of actually having to file a return, or especially owing any taxes on it?

 

[9YRPLAN]

please explain how the sale of gifts or an autograph would be taxable under IRC

 

[OldtownHawkFan]

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

 

[tweeterhawk]

I think you can reasonably assume the IRS is looking into this, perhaps not as much from the perspective of the players as the owners of the tat shop and anyone else who may have benefited. Also, the IRS is a notorious bottom-feeder in that its agents often sit in trials, hearings, etc., sifting through official filings and evidence to see if there's any additional they need. So it may be waiting to see what else comes out.

 

[okeefe4prez]

Interesting point. I wonder if their "scholarship" benefits don't fall under the tax code somehow, so the actual "income" they are receiving from selling junk and boosters is not enough to lift them up to the level of actually having to file a return, or especially owing any taxes on it?

I don't remember the Code section, but a scholly for tuition ain't taxable income and the school prolly attributes a ridiculously low amount for the portion that would be taxable (room & board).

 

[okeefe4prez]

please explain how the sale of gifts or an autograph would be taxable under IRC

See Section 61 of the Internal Revenue Code of 1986, as amended.

 

[okeefe4prez]

I think you can reasonably assume the IRS is looking into this, perhaps not as much from the perspective of the players as the owners of the tat shop and anyone else who may have benefited. Also, the IRS is a notorious bottom-feeder in that its agents often sit in trials, hearings, etc., sifting through official filings and evidence to see if there's any additional they need. So it may be waiting to see what else comes out.

The tat shop didn't benefit, it was making a gift. If the gift was above the limits of a tax-free gift, that will be another charge they bring against that guy who owned it, but you would need to give away some serious tats to one person in one year to hit the limit. Car dealer might be a little nervous over the gift limits, though. Even if they caught a player, the net recovery to the IRS would be about negative $50k.

 

[CAARHawk]

The IRS is a part of the DMV probe. They are looking into the sale of up to 40 cars at ridiculously low prices, as low as one dollar. The difference between $40,000 and $1 needs to be accounted for.

 

[DwayneTwill]

If the IRS doesn't have anything better to do than to poke around into this piddly s**t we're in pretty good shape as a nation.

 

[hawkeye12345]

Dwayne I think you're missing my point.

IMO the NCAA and amateur athletics in general is corrupt. Players today take what they want and really don't care what the NCAA does to them. By the time they are caught (if they are caught) they are generally either playing in the NFL / NBA or finished with school and by then the NCAA has no jurisdiction.

IRS Tax Code per IRS guidelines. You must file if Chart A, B or C applies to you.

Chart A

Single under 65 must file if > $9350

Chart B - THIS WILL APPLY TO ALMOST EVERY COLLEGE ATHLETE SO PAY ATTENTION

Were you younger than 65? Yes
Were you claimed as a dependent by another? Yes
YOU MUST FILE A RETURN IF ANY OF THE FOLLOWING APPLY.
- your unearned income was over $2,350.
- your earned income was over $7,100.
- your gross income was more than the larger of -
$2,350 or, earned income plus $1,700

Chart C probably wouldn't come into play but if you want to look at it go to the IRS. gove website.

So in a nutshell, Chart B places nearly 100% of the fOSU players in the crosshairs of the IRS. It would also place the Auburn QB and his dad in jeopardy if they could prove that money exchanged hands. In addition, nearly every college athlete that accepts anything of value is going to be in jeopardy of going to jail.

Don't any of you dolts remember what brought down the mob? Tax evasion.

If the IRS gets involved I think they could put an end to all of this in a hurry.

 

[okeefe4prez]

Don't any of you dolts remember what brought down the mob? Tax evasion.

Great, but the fact remains that the IRS has some threshold (it won't tell you what it is obviously) where it won't attempt to collect because collection costs will far exceed amounts collected. That's where the vast majority of college athletes would end up. The marginal rate on $10k less the standard deduction will net at most a few hundred bucks. I know you are a big government lover and you want nothing more than a full on IRS shakedown of everyone who gets the $81 1099 a few weeks after they file their return and don't file a 1040X or going after some college kid for a few hundred bucks, but as a net taxpayer, I don't want to see Uncle Sugar throw away $3 billion to collect $5 million.

 

[busabus114]

Probably because they have slightly larger cases to worry about

 

[hawkeye12345]

Great, but the fact remains that the IRS has some threshold (it won't tell you what it is obviously) where it won't attempt to collect because collection costs will far exceed amounts collected. That's where the vast majority of college athletes would end up. The marginal rate on $10k less the standard deduction will net at most a few hundred bucks. I know you are a big government lover and you want nothing more than a full on IRS shakedown of everyone who gets the $81 1099 a few weeks after they file their return and don't file a 1040X or going after some college kid for a few hundred bucks, but as a net taxpayer, I don't want to see Uncle Sugar throw away $3 billion to collect $5 million.

I hear what you are saying and agree with the sentiment but my point isn't about revenue collection per se. I see tax collection as more of a red herring with cleaning up the NCAA and amateur athletics as the primary objective.

IMO if the IRS were to make example of a Pryor or Reggie Bush then I think that would go a long way to cleaning up the system.

 

[DwayneTwill]

What O'Keefe said.

As for the IRS as a deterrent to clean up the system, hahahahahahahahahahahahahahahahahahahahahahahaha...okay...as i was saying...as for the IRS as a deterrent to clean up the system, what 17-23 year old kid is going to turn down free cars and cash under the table because it might get them into trouble with the tax man? Seriously?

 

[Cydkar]

If they sold something and failed to report it on their taxes then it's a clear violation of the tax code.

I've never understood why the IRS doesn't get involved in stuff like this. If there is one agency that could put an end to the corrupt nature of NCAA and high school sports its the IRS and yet they never seem to get involved.

Why?

The IRS doesn't tweet when they begin an investigation.

 

[ArizonaHawkeye88]

Amounts are often below threshold for filing a tax return. $5k doesn't trigger a requirement to file a return if that's your only income.

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.

 

[tweeterhawk]

The tat shop didn't benefit, it was making a gift. If the gift was above the limits of a tax-free gift, that will be another charge they bring against that guy who owned it, but you would need to give away some serious tats to one person in one year to hit the limit. Car dealer might be a little nervous over the gift limits, though. Even if they caught a player, the net recovery to the IRS would be about negative $50k.

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.

 

[DexterMorgan]

I'm extremely surprised they aren't looking into it. Sounds exactly like something the US Government would waste their time on. There probably needs to be a senate hearing as well.