Arbiter Mandate

[Andy]

Do you remember about 10 years ago or so, the IRS started going after individuals who made tips as a majority of their income? the IRS felt that most people were under reporting or not reporting that income at all in order not to be taxed on it.

I have heard that the IRS has now turned an eye toward sports officials. There is pressure on officials organizations and state HS governing bodies to account for the payments to officials. In the past, it was "pick up a check or cash as you arrived for your assignment." I only got a 1099 if I was over the $600 limit from one school district.

As of three years ago here, all HS officiating payments are going through RefPay....now I get a 1099 for all of the HS officiating that I did the previous year.

Centralized officiating payment systems are the way it is going.

[Welpe]

Originally Posted by Andy

Centralized officiating payment systems are the way it is going.

If it streamlines the process and gets me paid quicker, fine by me!

[Adam]

Originally Posted by Welpe

If it streamlines the process and gets me paid quicker, fine by me!

Other than saving a day or two in the mail, I can't say I've seen a marked time savings.

[Andy]

Originally Posted by Welpe

If it streamlines the process and gets me paid quicker, fine by me!

When RefPay was implemented for HS games in my area, we went from getting a check or cash at the game site to having to wait for 1 - 3 days for the money to hit RefPay, then another 2-5 days to transfer it to my bank account.

So, for us, it extends the time it takes to get paid.

[BayStateRef]

Originally Posted by Andy

Do you remember about 10 years ago or so, the IRS started going after individuals who made tips as a majority of their income? the IRS felt that most people were under reporting or not reporting that income at all in order not to be taxed on it.

I have heard that the IRS has now turned an eye toward sports officials. There is pressure on officials organizations and state HS governing bodies to account for the payments to officials. In the past, it was "pick up a check or cash as you arrived for your assignment." I only got a 1099 if I was over the $600 limit from one school district.

I have heard this too...and I think it is going to change the landscape for a lot of sports officials. I have heard from volunteers who run local leagues for basketball, baseball, softball and football that they are under increasing scrutiny from the IRS and have to start issuing 1099s.

I know one league that started this a couple of years ago and subsequently lost a bunch of officials who did not want any "proof" of income. The head of one small baseball league told me his organization paid $24,000 to umpires last year...but the paperwork burden to him and the treasurer to be in full compliance will be large. (They used to pay cash at the field.)

I know far more officials who work for cash and never report their income than I know those who report every penny, but also keep records to offset that income with legal deductions.

[Camron Rust]

Originally Posted by BayStateRef

I know far more officials who work for cash and never report their income than I know those who report every penny, but also keep records to offset that income with legal deductions.

Then you know a lot of criminals.

As I'm sure you know, ALL income, even if it is cash or if no 1099 is issued is taxable income. The $600 limit for 1099's has nothing to do with whether the income is supposed to be taxable, just that the paying organization need not incur the overhead of having to create the 1099 document.

Those skipping out on their taxes like this are just stealing from the rest who properly report their income and pay taxes on it. I'd bet that a lot of them are also the first ones to sign up for government assistance which means they're not only cheating on their taxes but obtaining income-based benefits they don't deserve, further cheating those that pay their taxes and taking limited resource benefits from those that actually deserve them.They probably also are the first to vote to raise taxes on those actually reporting income so that they can get more from those government programs.

If they're not doing it to skip on taxes, then they're doing it to avoid paying child support for their kids....equally despicable, perhaps more.

[Rich]

Originally Posted by Camron Rust

Then you know a lot of criminals.

As I'm sure you know, ALL income, even if it is cash or if no 1099 is issued is taxable income. The $600 limit for 1099's has nothing to do with whether the income is supposed to be taxable, just that the paying organization need not incur the overhead of having to create the 1099 document.

Those skipping out on their taxes like this are just stealing from the rest who properly report their income and pay taxes on it. I'd bet that a lot of them are also the first ones to sign up for government assistance which means they're not only cheating on their taxes but obtaining income-based benefits they don't deserve, further cheating those that pay their taxes and taking limited resource benefits from those that actually deserve them.They probably also are the first to vote to raise taxes on those actually reporting income so that they can get more from those government programs.

If they're not doing it to skip on taxes, then they're doing it to avoid paying child support for their kids....equally despicable, perhaps more.

I'd like to see how many of those who preach about integrity don't bother claiming officiating income on their taxes unless they're forced to.

[JRutledge]

Originally Posted by Rich

I'd like to see how many of those who preach about integrity don't bother claiming officiating income on their taxes unless they're forced to.

Exactly.

And even a lawyer I know tells fellow officials to claim a lot of things legally so that you get write-offs and not really be taxed or have to pay based on that income. And when you consider a lot of things like dry-cleaning or meals after a game, many of us are not really making a killing officiating games at $60-$70 a pop. I know I am lucky if the money I make does not do much more than pay expenses for the year than anything.

Peace

[BillyMac]

Originally Posted by JRutledge

I know I am lucky if the money I make does not do much more than pay expenses for the year than anything.

Because I purchased three new pairs of shoes this past season, two pairs of Zigs for high school games, and a pair of "walkers" for Catholic middle school games, plus a new equipment bag, I didn't "make" enough money to pay Social Security taxes.

Note: If anybody asks, I always go home to get my bag after work, no matter how close the game is to my day job.

[just another ref]

Originally Posted by BillyMac

Note: If anybody asks, I always go home to get my bag after work, no matter how close the game is to my day job.

As far as I can recall, nobody ever asks here, but you have posted this numerous times. I suppose your point is that you claim a mileage deduction from home to the game site regardless of whether you actually drove from home. Is this legal?

[Camron Rust]

Originally Posted by Rich

I'd like to see how many of those who preach about integrity don't bother claiming officiating income on their taxes unless they're forced to.

Indeed. I claim everything I make from all sources regardless of how small. I don't leave anything out on purpose. If I have missed some income, and it very well could have happened, it is due to an error rather than a deliberate action. I don't have a lot of respect for those that consciously choose to not report their income, particularly those who stop taking games once they get near $600 from a source so they can avoid having it get reported.

[JRutledge]

Originally Posted by Camron Rust

Indeed. I claim everything I make from all sources regardless of how small. I don't leave anything out on purpose. If I have missed some income, and it very well could have happened, it is due to an error rather than a deliberate action. I don't have a lot of respect for those that consciously choose to not report their income, particularly those who stop taking games once they get near $600 from a source so they can avoid having it get reported.

People that are self-employed or run some kind of business often take advantage of any rules that allow them to not pay taxes. That is not unusual to officiating. And often those advantages are not illegal. I do not know about you, but it would be really hard to make $600 at any one school. That least time I did it was when I was working baseball and I worked a game in each of my seasons at a particular college. Otherwise it is nearly impossible to work that many times at any school and especially at the high school level. Too many schools for that to happen (then again my area does not have one assignor for an entire association). I do not begrudge officials to take the same advantages they can when it comes to being an independent contractor and not getting a W2 from a business.

I have been in sales for year and I did the very same thing to take advantage of things to ultimately not pay things I could write off. Officiating is not special in that respect.

Peace

[Welpe]

Originally Posted by JRutledge

People that are self-employed or run some kind of business often take advantage of any rules that allow them to not pay taxes. That is not unusual to officiating. And often those advantages are not illegal.

That is absolutely true and if legal, I have no problem with it.

What Camron is saying is that there are officials who will stop taking assignments from a certain entity if they know they are close to hitting $600 which will require a 1099 to be generated by law. They are doing this to reduce the actual records of the income they make because they more than likely aren't claiming what isn't reported on a 1099.

Remember, regardless of whether a 1099 is issued or not, you're legally required to claim that income. The $600 threshold was implemented to reduce the paperwork burden on entities paying small sums infrequently to independent contractors.

I do not know about you, but it would be really hard to make $600 at any one school.

I can see that if you're paid by each school. Here we are paid by the district for public school games. I'm usually good for 1-2 1099s a year in the districts I work the most.

[Adam]

Originally Posted by Rich

I'd like to see how many of those who preach about integrity don't bother claiming officiating income on their taxes unless they're forced to.

I'd like to see how this integrity plays out in the rest of life as well: not just officiating income or even taxes.

[JRutledge]

Originally Posted by Adam

I'd like to see how this integrity plays out in the rest of life as well: not just officiating income or even taxes.

And that is why it cracks me up when people try to act like if someone takes some cash and does not report it, that we have violated some moral code.

Peace