Tax FAQs

It’s that time of the year again – the Tax Man cometh! Sorting out your officiating income on top of your normal income doesn’t have to be complicated. NASO provides the following list of tax-related "Frequently Asked Questions" to help you get through the bureaucracy. For more tax information, go to www.naso.org/tax/.

What should I do if I receive notice from the IRS saying my return has been selected for audit?

After picking yourself up off the floor, consider hiring an experienced tax professional to represent you at the audit. Often, the mistake made by taxpayers who represent themselves is saying something that causes the auditor to look into issues other than those that they originally intended to audit. IRS agents are trained to audit the taxpayer, not just the return. Because of this frame of reference, some of the questions asked by the auditor are hot buttons or emotional areas for the taxpayer. To avoid the audit being based on emotions instead of facts, it is very important that the person dealing with the agent be knowledgeable about both the tax issues that may be raised and the system in which the auditor must work. Your most important job is having complete documentation in good order. That process starts when your return is filed, not when your return is selected for audit. If you have knowingly understated your income or grossly overstated your deductions, do not disclose that to anyone but your attorney. An attorney is the only person having privileged communication.

Do I have any retirement plan options from my officiating activity?

Yes. If you’re being treated as an independent contractor, you may be able to contribute to a retirement plan over and above what you are doing now. The options and limitations available to you will vary based on the rest of your tax facts. This area requires consultation with a professional familiar with your situation and goals.

Are the officiating camps I attend deductible?

Yes. Your education and training to stay current in your skills are directly related to the business of officiating. Some of the expenses that might be incurred include travel, meals (at 50%) and registration fees. Keep careful record of those expenses at the time they are incurred.

Is all my mileage deductible if I leave my primary employment and stop by home on the way to a game?

No. If you went home before you went to the game site, the miles from home to the game site would be personal miles. A simple way of looking at it is if you are going from one business location to another business location, your miles are business. If you are leaving from your home, the miles are personal. That gets even more complicated if your home is also your business location (office in the home). The key to maximizing this deduction is keeping good records of the use of your vehicle and using common sense when traveling from your primary job to your officiating assignments, meetings, etc.

If I receive my fee in cash do I have to report it?

Yes. Income is not determined based on how it is paid to you or how much it is. If you provided services for the cash, it is income to you. That will be true even if you do not receive a Form 1099 for the income.

If I travel away from home overnight can I deduct my spouse’s expenses if she or he travels with me?

No. Unless your spouse is officiating also, those expenses are personal. Only your expenses are deductible.

Can I deduct my telephone for use in my officiating business?

Yes. At least you may deduct the long distance charges relating to your business. If your home phone is also your business phone, the monthly base fee is considered a personal expense first.

If I go to a game in the sport I officiate to watch the officials, can I deduct those expenses?

No. The expenses related to this activity will be personal and nondeductible. The training you might gain is too ambiguous to be directly related to your business.

Can I deduct my computer?

Yes and no. If you are officiating as an independent contractor, then you should be able to deduct the business portion of your computer. If you are officiating as an employee, the computer must be a condition of employment before the business portion would be deductible.

How long should I keep my records?

For federal purposes you should keep proof to support your claim to a deduction for as long as your income tax return can be examined. Generally, it will be necessary for you to keep your records for three years from the date you file the income tax return on which the deduction is claimed. A return filed early is considered as filed on the due date. The statute of limitations for state returns will vary by state. Check with your tax advisor for your state requirement.

Kindergarten's Five 'Golden Rules' Still Apply

Picture a typical kindergarten class: crayons, pony-tailed girls and finger paintings. That age of wonder for children is a time for learning lessons about life.

Just before a kindergarten class is ready to depart to cross the street to play, teacher Ms. Larson lectures the kids: "Before we leave, find a ‘buddy’ and pair off. Stay with your ‘buddy’ at all times because, as I’ve told you before, there’s safety in numbers. Make sure you look both ways before crossing the street. Zip up your coats and don’t dillydally. Tommy! Don’t sass back!" With that, the children are off to play.

Little did you know back then that those five kindergarten "golden rules" would still be relevant today, including in your officiating. For example:

1. "Stay with your buddy … there’s safety in numbers." Any time you officiate, it’s a good idea to think about your crewmates. There are many times when at least two people should be present while performing a duty.

Walk with your partner or partners from the locker room to the game site. When the game ends, walk with your partner off the court or field. With at least two of you together, you can look out for each other and for potential problems. Emotions often escalate after games and occasionally people will try to confront you. With two of you together, you have a potential peacemaker and a potential witness if anything should go awry.

Taking that a step further, always walk together from your locker room to your cars. Again, you may have some unexpected "guests" ready to offer their thoughts about your perceived lack of officiating ability. Ms. Larson was right. There is safety in numbers.

2. "Look both ways before crossing the street." When walking to or from the field or court, visually scan the area to observe what’s nearby; don’t just put your head down and barrel through a crowd. With two officials looking around, you have a better chance of avoiding trouble.

3. "Zip up your coats." Look and dress as if you belong on the field or court. Appearance counts when you seek the respect of players and coaches.

Properly wear your uniform. If your jacket has a zipper, pull it up to a normal, comfortable height. If you have button shirts, button them up as you would a normal shirt. There’s no need to keep half your buttons undone or roll up your short sleeves to "show off." A clean, properly worn uniform will help you look the part, which can lead to acceptance of the judgment you use to make your calls.

4. "Don’t dillydally." It is important to keep your game moving. That doesn’t mean you should rush through things and skip important officiating processes. However, you should let the game establish a rhythm and then make adjustments if necessary.

Those who play, coach and watch the games you officiate want to see action. If a game is flowing smoothly, don’t interrupt the flow for something that can be handled later.

Here’s an example related to baseball: First pitch: swing and a miss for strike one. Next pitch: called strike two. Now, the plate umpire realizes that there are tiny specs of dirt on the plate and he stops the game to brush off the plate.

5. Don’t sass back!" Most officials get in major jams when they say things that are better left unspoken. While at times it’s difficult to keep your emotions in check and not to respond to comments from players and coaches, sometimes it’s best to simply ignore what they say.

Even when a player or coach becomes profane or vulgar toward you, fight the urge to snap back. Just eject him and soon the storm will pass. Of course, that’s much easier said than done. But lowering yourself to an angry player’s standards usually creates more problems than it solves. As a result, you lose the player’s respect and your own self-respect. You cannot afford to take things personally. Remember, most of the time they are not yelling at you, they are yelling at the uniform you wear and what it represents.

When contemplating your approach to the game, think about the simple lessons you learned years ago when you were in kindergarten.

NASO Membership Offers Valuable Summit Discounts

The NASO Sports Officiating Summit will be held in Salt Lake City, Utah, July 30-Aug. 1.The entire Summit program, registration form, information about Salt Lake City, schedule of planned optional activities for attendees and guests and registration for hotel accommodations are all listed in detail at www.naso.org/summit2005.

NASO members will find an extra benefit while registering for the Summit this year. For the first time ever group registration discounts are available when three or more officials or administrators from the same association, league or conference sign up for the Summit on the same registration form. The discount allows each attendee to receive $70 off the normal registration fee – saving a total of $210 in registration fees. Check out the registration form for additional information.

Individual NASO members save $50 with a reduced membership rate. Register by June 20 for an additional $50 savings and a chance of winning one of four valuable prize packages. Packages include VIP service while at the Summit, gift certificates for Salt Lake City’s premiere downtown restaurants and a gift certificate for Referee products.

The Salt Lake City Marriott is the host location for the 2005 Summit and offers affordable room rates of $109 per night. The room rate includes either one queen or two double beds and occupancy of up to four guests per room.

Without a doubt, NASO has made the Sports Officiating Summit affordable to all NASO members. Visit the Summit website and then register for the NASO Sports Officiating Summit today. We’ll confirm your registration and then send you an information packet now, and then another packet just before the Summit event.

For additional information about the NASO Sports Officiating Summit, contact NASO Special Events and Program Manager Tina Sagal at 800/733-6100 or tsagal@naso.org. We look forward to seeing you in July.

NASO-ON Helps Make Officiating Leaders Better

The National Association of Sports Officials-Organizations Network (NASO-ON) is a service affiliate of NASO and provides local officials association leaders the tools they need to help them improve their officiating programs.

Tom King of the South East Athletic Officials Association in North Carolina said, "Our association has been a member of NASO-ON since its inception. It is an invaluable tool for our association. Benefits like free copies of each sport’s publications are great resources for our sport clinic leaders as they prepare their bi-weekly clinics." NASO-ON members receive every new publication as it is produced by Referee free of charge upon request.

The Guide To Local Association Management – another publication and resource of NASO-ON membership is a perfect resource for association officers and board members. Produced in a handy three-ring binder, the Guide is a "living document" with tips and guidelines. It provides detailed information on topics such as: training, assigning, meeting management, public relations, contracts, fundraising, mentoring, recruiting, evaluating and accountability in officiating. New chapters are added periodically and old chapters updated based on practical experience from NASO-ON members.

NASO-ON membership provides a full year of Referee magazine (special NASO members-only edition) absolutely free. Referee can be used as a training tool for rookie officials, reference for veteran officials and provides features that can lead to open discussion.

Members also receive a full year of ONBoard, the official newsletter of NASO-ON. Published monthly, members receive the latest tips on association management, public speaking, meeting presentations, legal issues and more. Exclusive access to all previously published articles are also found on the NASO-ON members-only website.

Additional benefits include: access to legal and tax information, discounts on NASO memberships, optional general liability insurance, monthly issue of ONLine, optional D&O insurance, discounts on educational publications and the NASO Sports Officiating Summit.

NASO-ON provides over $350 in "Member-Only Benefits" but costs only $99 a year.

So, if you are an association leader and if you want the tools to help you better lead your association, join NASO-ON today. Simply go to our website, www.naso-on.org and click on the "join NASO-ON" button. It’s that easy.

For additional information regarding NASO-ON contact Tina Sagal, NASO-ON coordinator, at 800/733-6100 or tsagal@naso.org.

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