" The information provided on our Web site is for informational purposes only. It is not intended to replace or substitute for sound legal advice.
Recommend you consult with an attorney, a tax professional or a licensed IRS Enrolled Agent.

"Information is not the same as legal advice"

"It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you'll do things differently."
..........Warren Buffett                       

Booster Club Prez Explains "Losing IRS Tax Exemption"

Records Demanded on High School Sports

Tennessee is one of the few states that audit booster organizations.
Its the LAW, mandated by the state's legislation.
You can view all the investigative reports at the below link.
Tennessee Comptroller, Division of Investigations

Are School Districts tax exempt??
YES!! School districts are classified by the IRS as a governmental entity
Documentation should be on file for public viewing upon request
School Districts are....
Liable, Accountable, and Responsible for Payments to Vendor

IRS considers paid youth coaches as employees, not contractors
(Opens in new window)

Reporting Payments to Independent Contractors
(Opens in new window)

High School Referees, Umpires, Judges.....
You, school administrators, and state governing body are
Liable, Accountable, and Responsible

Protect Our Schools (Districts)

An Overlooked IRS Revenue Ruling
IRS Rev Rule 67-119

22 December 2013
The former White Knoll High School athletics director who used a forgotten booster club bank account to
embezzle some $112,000 in public money over four years as his personal slush fund was sentenced to a year of weekends in jail Monday.

A booster club is an approved school support organization that raises funds for student athletics and activities. No school employee (athletic director and/or coach) should have access to funds. Can serve as a non-voting advisor.

   PRESS RELEASE   Monday, December 10, 2012
Former Chelsea Piers Basketball Program Supervisor Sentenced In Manhattan Federal Court To Two Years In Prison For Identity Theft

Former High School Booster Club Treasurer:   I stole $400K

Louisiana High School Athletic Association settles its case with Internal Revenue Service
Former LHSAA Commissioner Fined $224,418 !!

Athletic Boosters Lose Charity Status
Boosters could be forced to pay taxes on donations as a result

IRS Audits Little League Program

New Version of
IRS Pub 557, Tax-Exempt For Your Organization, October 2011

Should Your Association Be A Registered 501(c)(3) or 501(c)(6)??

If your state High School Association is a registered 501(c)(??), and
your community-based association is sanctioned, approved, or accredited by the governing body of interscholastic athletics and activities.
Its HIGHLY recommended that your association have IRS Letter of Determination (Tax Exemption).

High School Sports Officials must SAFEGUARD their personal interests at all times.
Expose corruption and breaches of integrity wherever discovered
DO NOT allow governing body to use your personal assets as COLLATERAL.

IRS Form 990 or Form 1120
Due No Later Than May 15th, 2014 for those on calendar year

November 15th, 2014, for ones using school year

"Transparency and Accountability Are Public Requirements Of"
Public Charities
School Support Organizations (booster clubs)
Youth Sports Organizations
Sports Officials Associations

Profile of a Sports Official Association

As of 22 December 2013, there are "37,509" 501(c)(?) organizations in Georgia
Includes Boosters Clubs, PTAs, PTOs, Little League, Approved Associations, etc

IRS Master Data File
(Booster Clubs, PTO, PTA, LL)

The Sarbanes-Oxley Act has no actual effect on nonprofit organizations,
other than requirements for adoption of document destruction/retention and whistleblower policies.
The latter, if ignored, can be reported to an agency having the power to investigate violations
Click to View >>>>>   Summary of The Sarbanes-Oxley Act and Implications for Nonprofit Organizations

disinformation .....
     misinformation that is deliberately disseminated in order to influence or confuse rivals (foreign enemies or business competitors, organization members, etc.)
     Example:  stating organization meets all nonprofit requirements

  information that is incorrect
     Example:Stating Sarbanes-Oxley Act, Open Records Act and Open Meetings does not apply to organization.

Simple Choices
"Tax Exemption" or "Corporate Tax"

IRS to investigate why.......
Less than 10,000 School Booster Clubs are Compliant....Click Here
School Booster Clubs can get assistance from  >>> Parent Booster Clubs

Are High School Sports Officials Associations Next??  Coming In 2012 thru 2015

According to the IRS,
Local sports organizations and community support groups,
volunteer fire and ambulance associations and their auxiliaries,
social clubs, educational societies, veterans groups,
church-affiliated groups and groups designed to assist those with special needs
all need to ensure that they're square with the government.

Local Associations and Officials....
Payments Made By Schools Comes From Taxpayers Funds
(Even when booster clubs gives MONIES TO contracting SCHOOL DISTRICTS or SCHOOLS)
These funds are then accountable and reportable by the School District
via Form 1099 and Form 1096 yearly

[ Association Name ] is a federal 501(c)(?) tax-exempt organization

Page Last Reviewed or Updated:  18 March 2015