July 21, 2021 · 10:22 AM

Taxing questions

I’ve seen plenty of questions here about the tax consequences might be for players who start receiving NIL compensation.  Here’s a link to the most in-depth discussion I’ve seen so far on the subject, if you’re interested in some answers. (h/t)

19 Comments

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19 responses to “Taxing questions”

  1. MGW
    July 21, 2021 at 10:24 AM

    For God’s sake don’t spend it all, kids. You’re high profile and you WILL be audited.

    Liked by 1 person

  2. eethomaswfnc
    July 21, 2021 at 10:42 AM

    Great article, and yes, this topic is extremely complex. The recruiting angle especially on state tax is really interesting with a potential pull to no and low state tax states over “high” tax states.

    Like

  3. godawgs1701
    July 21, 2021 at 10:49 AM

    Great. Vandy’s going to cancel on us THIS year because too many of their players will have been arrested by the IRS.

    Like

  4. Teacher Martin
    July 21, 2021 at 11:20 AM

    Wonder which tax lawyer will be the first to use a CFB player to advertise?

    Liked by 1 person

  5. Texas Dawg
    July 21, 2021 at 11:23 AM

    The guys like Young making (a reputed) $1 million a year will have tax attorneys, accountants to help them make the right decision since they will be able to afford it. It’s going to be that kid making a few thousand or a few 10’s of thousands that is the one that are going to get pinched most likely. They will be getting more money than they ever had in most cases, but still not enough to afford professional guidance. Are athletic departments now going to need to add a staff tax advisor to the payroll?

    Like

    • Dylan Dreyer's Booty
      July 21, 2021 at 11:54 AM

      While I am not encouraging anyone to act imprudently, I will say that guys who make a few thousand dollars are not likely to be worth the IRS’ time. It’s a woefully understaffed agency right now. For the most part, it isn’t really difficult math – just get a decent program, set a percentage aside and pay quarterly. Just do it; don’t wait until the end of the year.

      Like

      • Russ
        July 21, 2021 at 3:17 PM

        Yeah, logically I agree with you. But I’m sure there’s a Jimmy Williamson in the local IRS office looking to make a name by “taking down” these scofflaws.

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  6. drunkenmonken
    July 21, 2021 at 11:49 AM

    How long before the states the players have games in as visiting teams initiate a tax like they have on pro athletes?

    Liked by 2 people

    • Texas Dawg
      July 21, 2021 at 11:53 AM

      Since they are being payed for their NIL NOT for playing the game, that should not be an issue unless they do an appearance for the sponsor in said state. I would bet the farm however that the states will be searching the tax code top to bottom to find a way to tap that revenue stream.

      Liked by 5 people

  7. W Cobb Dawg
    July 21, 2021 at 2:21 PM

    Most P5 programs worth a wooden nickel have staff, or will soon have staff, to help the players with financial guidance. Does any school, just about all of which have accounting/financial degree programs, really want to be the first to have a player brought up on tax charges?

    Liked by 1 person

    • stoopnagle
      July 21, 2021 at 3:33 PM

      If you don’t think this is part of the official visit spiel, then you’re not paying attention. Kirby’s on the mother.

      Like

  8. Harold Miller
    July 21, 2021 at 2:45 PM

    Are the Athletic Programs allowed to provide Tax Accountants or Attorneys for the players, or is that an impermissible benefit?

    Like

  9. trbodawg
    July 21, 2021 at 3:00 PM

    I see a recruiting advantage for states without a personal income tax. Perhaps Kirby can get the legislature to repel it. 🙂

    Liked by 2 people