Youth Soccer Groups Face IRS Penalties
June 26, 2006
A nonprofit Connecticut youth soccer league is appealing an Internal Revenue Service audit that assessed $334,000 in back taxes and fines that league leaders say could drive it out of business, reports The New York Times.
The case, in Fairfield, could set a precedent for nonprofit sports leagues. It turns on the issue of whether coaches and referees are considered employees or independent contractors. The audit found that the Fairfield United Soccer Association failed to withhold taxes for 12 paid coaches and many referees in 2003 and 2004, the Times reports. The league considers coaches and referees independent contractors.
