The IRS And You

JFlores · #1 (**permalink**) Thu Oct 25, 2007, 01:56pm

Screw the irs, most of the money i make goes to pay off my federal student loan.

german_ump · #2 (**permalink**) Thu Oct 25, 2007, 02:02pm

To expand on Delaware Blue's answer. By not reporting the $5900 you would have committed a crime. It's called income tax evasion. That is more serious that doing some creative accounting on deductions. The law says that you need to report your income. For this crime you could go to jail.

Welpe · #3 (**permalink**) Thu Oct 25, 2007, 02:03pm

Quote:

Originally Posted by JFlores

Screw the irs, most of the money i make goes to pay off my federal student loan.

Well hopefully the IRS doesn't screw you. I don't think they're going to care where that money goes, only that they didn't get their piece of the pie.

JFlores · #4 (**permalink**) Thu Oct 25, 2007, 02:07pm

Quote:

Originally Posted by Welpe

Well hopefully the IRS doesn't screw you. I don't think they're going to care where that money goes, only that they didn't get their piece of the pie.

well if i have to report my income from baseball and basketball, I can deduct clinic cost, mileage, equipment and all that great stuff cant we?

bob jenkins · #5 (**permalink**) Thu Oct 25, 2007, 02:11pm

Quote:

Originally Posted by JFlores

well if i have to report my income from baseball and basketball, I can deduct clinic cost, mileage, equipment and all that great stuff cant we?

Sure. That's what schedule C is for. You should still have all the income on Scheduel C.

lawump · #6 (**permalink**) Thu Oct 25, 2007, 04:51pm

Sure...if you don't get a 1099 (because you only made $590) you can go ahead and not report it and you'll be fine...unless you're randomly selected for an audit...or your association is...then you'll be in trouble. The odds of being randomly selected for an audit are low...but why risk it? Especially when you CAN claim deductions, etc. for your "business".

Yes, I report EVERY dollar I make every year. I keep a log listing every game I contract to work, whether I actually worked the game and how much I was paid. Likewise, I also keep track of my expenses (read: receipts).

I'm not a TAX attorney, but, failure to report income is a crime than CAN and DOES result in jail time...in addition to fines, high interest rates on amounts owed, etc.

If you don't believe me...ask some NBA refs from the beginning of the decade.

Frankly, a sports officials' honesty should be beyond question. Failing to report income is dishonest behavior. I'm not surprised that many fail to report income they earn from officiating...but despite my lack of surprise it still saddens me.

Delaware Blue · #7 (**permalink**) Thu Oct 25, 2007, 05:23pm

Quote:

Originally Posted by lawump

Yes, I report EVERY dollar I make every year. I keep a log listing every game I contract to work, whether I actually worked the game and how much I was paid. Likewise, I also keep track of my expenses (read: receipts).

I do the same. I report all my game fees (including those paid in cash). I keep records for mileage (mileage is a tricky deduction), out of pocket expenses, and receipts for uniforms, equipment, supplies, dues (including NASO and ABUA), clinic fees, and dry cleaning and alteration expenses. I depreciate the cost of equipment over several years (depending on the equipment) and deduct the rest (as much as I believe I legally can) as business expenses. If I'm ever audited, I believe good records will go a long way in showing the auditor that I made a good faith effort to completely report my income and expenses. To me, it's not worth screwing around with the IRS over the relatively little money I make umpiring.

As I tell my son, integrity is what you do when no one is looking.

GarthB · #8 (**permalink**) Thu Oct 25, 2007, 06:16pm

Quote:

Originally Posted by lawump

I'm not a TAX attorney, but, failure to report income is a crime than CAN and DOES result in jail time...in addition to fines, high interest rates on amounts owed, etc.

My CPA, a former IRS field agent, has a saying: "Nobody goes to jail for over reporting deductions; they go to jail for under reporting income."

greymule · #9 (**permalink**) Fri Oct 26, 2007, 12:03am

In late June, I found in my post office box a letter from the IRS demanding almost $20,000, including penalties and interest. The notice said I had to pay up by August 15 or call to work out a payment schedule. I didn't have my glasses with me, so I had to wait until I got home to read the details. Needless to say, the 15-minute ride back was not a relaxing one.

Had I forgotten to declare my cash pay from that tournament in Pennsylvania?

This document was about 12 double-sided pages long, and it took a while to sift through it. I discovered that they had mistaken $40,000 worth of 1099 forms from 2004 as unreported income for 2005.

So I made copies and attached a letter pointing out their mistake (with big red circles around the "2004" on the 1099s) and a month later received a notice informing me that they had received my paperwork.

Last week, a letter arrived saying, "We have reviewed your case and determined that you do not owe any money at this time."

fitump56 · #10 (**permalink**) Thu Oct 25, 2007, 11:57pm

Quote:

Originally Posted by lawump

Sure...if you don't get a 1099 (because you only made $590) you can go ahead and not report it and you'll be fine...unless you're randomly selected for an audit...or your association is...then you'll be in trouble. The odds of being randomly selected for an audit are low...but why risk it? Especially when you CAN claim deductions, etc. for your "business".

Yes, I report EVERY dollar I make every year. I keep a log listing every game I contract to work, whether I actually worked the game and how much I was paid. Likewise, I also keep track of my expenses (read: receipts).

I'm not a TAX attorney, but, failure to report income is a crime than CAN and DOES result in jail time...in addition to fines, high interest rates on amounts owed, etc.

If you don't believe me...ask some NBA refs from the beginning of the decade.

Frankly, a sports officials' honesty should be beyond question. Failing to report income is dishonest behavior. I'm not surprised that many fail to report income they earn from officiating...but despite my lack of surprise it still saddens me.

We provide a free service and website to allow for each umpire to keep up with his expenses, to the limit of the law, AND free accounting help if needed. Why more orgs don't is beyond us.