The Tax-Exempt Status of the NCAA: Has the IRS Fumbled the Ball?

Brett Smith

Maybe the IRS actually knows what it is doing. With any luck, they can look at the overwhelming number of athletic departments that are not earning a profit and realize that removing the NCAA's tax-exempt status would only have a nominal return. Perhaps the IRS realizes that the nominal return that such a tax would generate would have such a sweeping effect on collegiate athletics that it may actually hurt schools more than it would help. Whether they realize this or do not want to overturn a long-lived precedent, the IRS has not fumbled its duty concerning the tax-exempt status of the NCAA. At this point, there is no reason to disrupt the current tax-exempt status of the NCAA, and there is no evidence that points to a change being necessary in the near future.

Posted by Jim Zellmer at December 19, 2010 1:13 AM
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