Arbiter Mandate

[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.