Part-time Coach in Exchange for Tuition NOT a Violation?

[taydizzle]

Here are a couple of thoughts on this subject:

 

1.) Coach Skogen had a long history of having paid his tuition for his family, so the issue was easier to be seen as an error by the administration and not financial aid, etc.

 

2.) It could set a tricky or dangerous precedent, but only time will tell and it is the TSSAA's problem now.

 

3.) Any bartering or trading off tuition, etc. must be done at fair market value. Was co-head football coach and basketball coach salaries comparable to other same positions at school's Temple's size, etc?

 

4. ) TSSAA has dropped it and we probably should too.

[PBandJ]

OK... Two things...

1. TTA did not provide him with the 1099 until the TSSAA started their investigation. I think this is what Zonie was saying in one of his posts where he talked about them "backtracking" out of a situation. They got by with this one... good for them... At least someone there was smart enough to get the 1099 out quickly....

 

Sorry, I don't have a dog in this fight but I thought I would add my $0.02.

 

It is my understanding too that Skogen asked for the 1099 after the fact. Hopefully he is also filing an addendum to his taxes. /wink.gif" style="vertical-align:middle" emoid=";)" border="0" alt="wink.gif" />

 

2. The 1099 that they produced for Skogen probably covered his services through the end of the school year, when he resigned. The problem is, it could only have began on January 1st of this year... beginning of this tax year. That means that the 1099 does not cover his services for football season, which occurred during the 2006 tax year.

 

Teacher's income tax is not like everyone else's. The IRS does not care about "school years"... they are concerned with tax years, which run Jan1 - Dec 31. Therefore, a teacher's W2 or 1099 will contain income earned during the last half of one school year and the first half of the following school year. As an example: The taxable income teachers reported by April 15, 2007 included income earned during the last half of 2005-2006 school year and the first half of 2006-2007 school year.

 

This stuff is way too confusing, and, with Skogen being a minister, and not responsible for paying taxes, the issue becomes more cloudy... Makes me glad that I didn't become a CPA! /thumb[1].gif" style="vertical-align:middle" emoid=":thumb:" border="0" alt="thumb[1].gif" />

 

Just to clarify, Skogen is exempt from paying taxes on his minister salary, benefits, etc. He is NOT exempt for paying taxes for any outside income producing employment positions such as coaching high school athletics. I really, really hope he has had a CPA look into the issues for him.

[Green_Acres]

OK... Two things...

1. TTA did not provide him with the 1099 until the TSSAA started their investigation. I think this is what Zonie was saying in one of his posts where he talked about them "backtracking" out of a situation. They got by with this one... good for them... At least someone there was smart enough to get the 1099 out quickly....

 

2. The 1099 that they produced for Skogen probably covered his services through the end of the school year, when he resigned. The problem is, it could only have began on January 1st of this year... beginning of this tax year. That means that the 1099 does not cover his services for football season, which occurred during the 2006 tax year.

Teacher's income tax is not like everyone else's. The IRS does not care about "school years"... they are concerned with tax years, which run Jan1 - Dec 31. Therefore, a teacher's W2 or 1099 will contain income earned during the last half of one school year and the first half of the following school year. As an example: The taxable income teachers reported by April 15, 2007 included income earned during the last half of 2005-2006 school year and the first half of 2006-2007 school year.

 

This stuff is way too confusing, and, with Skogen being a minister, and not responsible for paying taxes, the issue becomes more cloudy... Makes me glad that I didn't become a CPA! /thumb[1].gif" style="vertical-align:middle" emoid=":thumb:" border="0" alt="thumb[1].gif" />

 

 

 

I agree with a lot of what you have said. One thing you may be mistaken about is that Skogen should have received a 1099 this past January and it would have been for the 2006 tax year which would have included the football season but not this past basketball season. He should receive another 1099 in January of 2008 that would cover the 2007 basketball season.

[Green_Acres]

Sorry, I don't have a dog in this fight but I thought I would add my $0.02.

 

It is my understanding too that Skogen asked for the 1099 after the fact. Hopefully he is also filing an addendum to his taxes. /wink.gif" style="vertical-align:middle" emoid=";)" border="0" alt="wink.gif" />

Just to clarify, Skogen is exempt from paying taxes on his minister salary, benefits, etc. He is NOT exempt for paying taxes for any outside income producing employment positions such as coaching high school athletics. I really, really hope he has had a CPA look into the issues for him.

 

 

 

I am not sure that what you have said is entirely correct. As a past church treasurer (along with almost every other church job, lol), I have dealt with ministerial taxes before and it is a little trickly. He is not exempt from any taxes, he is just taxed differently. He can "exclude" himself from paying Social Security if he fills out a form saying that he has religious convictions against it. But, basically, without going into a lot of detail, he has to pay self-employment taxes on his salary but not not on his housing allowance. His housing is not considered income but he still has to pay Social Security taxes on it. He can also have a reimbursible expense plan with the church to further reduce his taxable salary, among other things. He can also have the church pay all of his health insurance, life insurance up to a $5,000 benefit, and retirement through an approved plan. Many CPA's are not well versed with ministerial tax situations but most ministers have a CPA or equivalent to do their taxes, for obvious reasons.

[blueandgoldfan]

Would (or, should) the TSSAA care if they dropped the Skogen situation, but the IRS found issue here? Does that seem unbalanced?

[zonepirate]

Would (or, should) the TSSAA care if they dropped the Skogen situation, but the IRS found issue here? Does that seem unbalanced?

 

 

The issue has been resolved such that the IRS will be happy although some penalities and back taxes for late filing/payments may apply. That's why the TSSAA case would be weak if they pressed the issue.

[Green_Acres]

All the IRS really cares about is getting their money. If you pay it late, send a little extra, but just pay it seems to be the rule.

[Grace Golden Eagles]

Is this a website to discuss taxes or high school sports?

[Indian]

Both, when it's something relevant to the situation.

[JaxMan]

The TSSAA needs to enforce it's own rules...how the IRS sees the issue should be of no concern...if it violates the TSSAA bylaws they should act...if not they shouldn't...the IRS can't be the determining factor on issues of atheletics at Tennessee high schools...that is the job of the TSSAA