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NFL as a tax-exempt entity
By Ramyrez 2014-09-23 08:59:31
Really good read I found over at Reuters today.
Just why does the NFL have tax-exempt status?
Quote: In the wake of the fallout over National Football League Commissioner Roger Goodell’s handling of his players’ domestic violence arrests, there have been multiple reports by journalists, who read the league’s filing of form 990 with the Internal Revenue Service, that Goodell was paid $44 million in the fiscal year ending March 31, 2013.
But there are lots of other leads for reporters to pursue based on what is in that filing, which is a report that every tax-exempt nonprofit organization has to file with the IRS.
For starters, there’s the existence of the form in the first place. How could the NFL — which helps negotiate billions in media and promotion deals for its member teams and which itself reported an operating profit of more than $9 million and $326 million in “program service revenue” — be given nonprofit tax-exempt status?
According to the filing, the NFL claims its tax exemption under section 501c(6). The IRS regulations define eligible 501c(6) organizations as the following:
- Business leagues
- Chambers of commerce
- Real estate boards
- Boards of trade
- Professional football leagues
Huh? How did that happen? Neither the National Basketball Association nor Major League Baseball have that valuable status. What’s the story behind that?
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By Odin.Jassik 2014-09-23 09:14:57
Amazing what you can sneak through when everyone is glued to their sofa or computer and the media is focused on what the congressional cafeteria is serving for lunch...
By Jetackuu 2014-09-23 09:14:59
lobbyists I'm sure, but you better be prepared to get lynched if you're going to go after football man.
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By Anna Ruthven 2014-09-23 09:16:08
Just why does the NFL have tax-exempt status? Because Tim Tebow is God.
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By Asura.Kingnobody 2014-09-23 09:17:27
Strike that, wrong code.
501(c)(6)
Quote: Business leagues, chambers of commerce, real-estate boards, boards of trade, or professional football leagues (whether or not administering a pension fund for football players), not organized for profit and no part of the net earnings of which inures to the benefit of any private shareholder or individual.
Anyone want to believe how unfair this is to the other sports organizations?
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By Odin.Jassik 2014-09-23 09:19:13
I don't know much about tax code, but it's listed as 501c6, not c3.
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By Asura.Kingnobody 2014-09-23 09:20:46
I don't know much about tax code, but it's listed as 501c6, not c3. Yeah, I saw that a little too late.
By Ramyrez 2014-09-23 09:21:11
I kind of get where they're going with it in a sense in the most generic way possible, as you have to consider that the league itself isn't the business, it's the organizing structure for each team. Which is how the major sports leagues avoid monopoly issues too, iirc. But that's only painting with the broadest of brushes.
The practical fallout of this is a huge money maker essentially calling itself a "non-profit".
MLB, NBA, NHL, etc. are not in on this either, so...I have to wonder what gives.
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By Asura.Kingnobody 2014-09-23 09:24:27
I kind of get where they're going with it in a sense in the most generic way possible, as you have to consider that the league itself isn't the business, it's the organizing structure for each team. Which is how the major sports leagues avoid monopoly issues too, iirc. But that's only painting with the broadest of brushes.
The practical fallout of this is a huge money maker essentially calling itself a "non-profit".
MLB, NBA, NHL, etc. are not in on this either, so...I have to wonder what gives. It looks like 501(c)(7) covers those.
Quote: Clubs organized for pleasure, recreation, and other nonprofitable purposes, substantially all of the activities of which are for such purposes and no part of the net earnings of which inures to the benefit of any private shareholder.
I don't know why they just don't strike out professional football organizations out of (c)(6) and have them file under (c)(7) though, seems like a waste to me.
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By Asura.Kingnobody 2014-09-23 09:25:10
Personally, I say *** it all and tax them anyway.
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By Bahamut.Milamber 2014-09-23 09:35:26
I kind of get where they're going with it in a sense in the most generic way possible, as you have to consider that the league itself isn't the business, it's the organizing structure for each team. Which is how the major sports leagues avoid monopoly issues too, iirc. But that's only painting with the broadest of brushes.
The practical fallout of this is a huge money maker essentially calling itself a "non-profit".
MLB, NBA, NHL, etc. are not in on this either, so...I have to wonder what gives. It looks like 501(c)(7) covers those.
Quote: Clubs organized for pleasure, recreation, and other nonprofitable purposes, substantially all of the activities of which are for such purposes and no part of the net earnings of which inures to the benefit of any private shareholder.
I don't know why they just don't strike out professional football organizations out of (c)(6) and have them file under (c)(7) though, seems like a waste to me. I would be interested in how it can be argued that clubs specifically geared towards professional sports fall under being organized for pleasure, recreation or nonprofitable purposes.
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By Asura.Kingnobody 2014-09-23 09:39:45
I kind of get where they're going with it in a sense in the most generic way possible, as you have to consider that the league itself isn't the business, it's the organizing structure for each team. Which is how the major sports leagues avoid monopoly issues too, iirc. But that's only painting with the broadest of brushes.
The practical fallout of this is a huge money maker essentially calling itself a "non-profit".
MLB, NBA, NHL, etc. are not in on this either, so...I have to wonder what gives. It looks like 501(c)(7) covers those.
Quote: Clubs organized for pleasure, recreation, and other nonprofitable purposes, substantially all of the activities of which are for such purposes and no part of the net earnings of which inures to the benefit of any private shareholder.
I don't know why they just don't strike out professional football organizations out of (c)(6) and have them file under (c)(7) though, seems like a waste to me. I would be interested in how it can be argued that clubs specifically geared towards professional sports fall under being organized for pleasure, recreation or nonprofitable purposes. Because of the broad definitions of "pleasure"
As long as they don't break the second part of the code: "substantially all of the activities of which are for such purposes and no part of the net earnings of which inures to the benefit of any private shareholder", they can pretty much get away with anything.
There are too many broad definitions in the code anyway....
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By Odin.Godofgods 2014-09-23 10:05:21
lobbyists I'm sure, but you better be prepared to get lynched if you're going to go after football man.
always hated football...
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By Asura.Ackeronll 2014-09-23 10:13:52
Just why does the NFL have tax-exempt status? Because Tim Tebow is God. This is gold.
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By Asura.Kingnobody 2014-09-23 10:14:24
Asura.Refreshazure said: »Players allowed to attack and harm people outside games without any consequences. Wait, what?
Where in the hell are you getting that?
By Jetackuu 2014-09-23 10:36:47
I kind of get where they're going with it in a sense in the most generic way possible, as you have to consider that the league itself isn't the business, it's the organizing structure for each team. Which is how the major sports leagues avoid monopoly issues too, iirc. But that's only painting with the broadest of brushes.
The practical fallout of this is a huge money maker essentially calling itself a "non-profit".
MLB, NBA, NHL, etc. are not in on this eofither, so...I have to wonder what gives. There's a lot of money makers that are "non-profit" so that's not the issue so much here more than that football is somehow a protected class.
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By Asura.Kingnobody 2014-09-23 10:39:45
Asura.Refreshazure said: »Oh come on there are stories all the time about football players attacking their girlfriends and only getting like a one two-game suspension.
last guy only got permanently because they had the video come out the NFL couldn't ignore the video even though they debated it for two weeks to whatever not to permanently suspended him.
But when he was accused with eyewitnesses the NFL was only give him one two-game suspension. then with the video came they had no other choice But to ban him or they would look really really bad not to. So, are you saying that we should automatically suspend any player who is accused of anything? Whatever happened to the notion of "innocent until proven guilty?"
By Ramyrez 2014-09-23 10:42:18
Asura.Refreshazure said: »Asura.Refreshazure said: »Players allowed to attack and harm people outside games without any consequences. Wait, what?
Where in the hell are you getting that?
Oh come on there are stories all the time about football players attacking their girlfriends and only getting like a one two-game suspension.
last guy only got permanently because they had the video come out the NFL couldn't ignore the video even though they debated it for two weeks to whatever not to permanently suspended him.
But when he was accused with eyewitnesses the NFL was only give him one two-game suspension. then with the video came they had no other choice But to ban him or they would look really really bad not to.
You understand that the problem with domestic violence, even when it comes to unknown rednecks, is that it if the DA or other legal entity wishes to press charges, they essentially need the cooperation of the victim, right? And in many domestic violence cases, the victims have their reasons -- right or wrong -- for not cooperating with that investigation?
I'm not defending the NFL per se; their attitude and treatment of domestic violence and other offenses are woefully inadequate.
But it's hard for the law to do anything about cases where the victim won't cooperate, let alone a private entity.
By Jetackuu 2014-09-23 10:54:02
Often times the DA with coerce the "victim" even if they don't want to be there, which is another level of ***that's *** up.
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By Cerberus.Anjisnu 2014-09-23 11:11:56
Eh work and personal life should be separate but thats my thoughts
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By Ramyrez 2014-09-23 11:12:47
Often times the DA with coerce the "victim" even if they don't want to be there, which is another level of ***that's *** up.
Define "coerce"?
You mean "convince them that their scum abuser should be behind bars"?
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By Cerberus.Anjisnu 2014-09-23 11:16:27
Lol a woman can hit you with a bottle scratch 3/4 of your skin off but if you push them so you can get out of the door to escape *** prison sex for you lol
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By Cerberus.Anjisnu 2014-09-23 11:19:36
Also any true domestic violence victim man or woman who sticks around after earned the next one
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By Cerberus.Anjisnu 2014-09-23 11:22:08
Btw speaking from experience as a paramedic ive seen dudes who look like they *** a lawnmower go to jail for cuts on a woman's knuckles lol
By Jetackuu 2014-09-23 11:22:36
Often times the DA with coerce the "victim" even if they don't want to be there, which is another level of ***that's *** up.
Define "coerce"?
You mean "convince them that their scum abuser should be behind bars"?
Not all people who get into fights are abusers.
But nice job going into Lifetime stereotypes.
By Ramyrez 2014-09-23 11:23:42
Lol a woman can hit you with a bottle scratch 3/4 of your skin off but if you push them so you can get out of the door to escape *** prison sex for you lol
"I just pushed her right in the face with a closed fist. What's the problem?"
Sorry. Don't buy it. This is fear mongering straight out of the playbook of "men's rights groups" which are basically coverup fronts for misogynistic scumbags.
Also any true domestic violence victim man or woman who sticks around after earned the next one
You clearly have little understanding of the situations of some of these people.
By Ramyrez 2014-09-23 11:25:40
Often times the DA with coerce the "victim" even if they don't want to be there, which is another level of ***that's *** up.
Define "coerce"?
You mean "convince them that their scum abuser should be behind bars"?
Not all people who get into fights are abusers.
But nice job going into Lifetime stereotypes.
Okay, you've responded with an insult but not answered my question.
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By Ramyrez 2014-09-23 11:27:22
Btw speaking from experience as a paramedic ive seen dudes who look like they *** a lawnmower go to jail for cuts on a woman's knuckles lol
Being put into the lockup overnight until the fuzz sorts out what happened is not being convicted of abuse, battery, or anything else. You didn't see anything but the police taking people away to sort things out.
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Really good read I found over at Reuters today.
Just why does the NFL have tax-exempt status?
Quote: In the wake of the fallout over National Football League Commissioner Roger Goodell’s handling of his players’ domestic violence arrests, there have been multiple reports by journalists, who read the league’s filing of form 990 with the Internal Revenue Service, that Goodell was paid $44 million in the fiscal year ending March 31, 2013.
But there are lots of other leads for reporters to pursue based on what is in that filing, which is a report that every tax-exempt nonprofit organization has to file with the IRS.
For starters, there’s the existence of the form in the first place. How could the NFL — which helps negotiate billions in media and promotion deals for its member teams and which itself reported an operating profit of more than $9 million and $326 million in “program service revenue” — be given nonprofit tax-exempt status?
According to the filing, the NFL claims its tax exemption under section 501c(6). The IRS regulations define eligible 501c(6) organizations as the following:
- Business leagues
- Chambers of commerce
- Real estate boards
- Boards of trade
- Professional football leagues
Huh? How did that happen? Neither the National Basketball Association nor Major League Baseball have that valuable status. What’s the story behind that?
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