Dave Moja | Jun 14, 2017 | TaxTips
In a recent case, the IRS found coaches’ “golf shirts”, etc. – provided by the college – to be taxable to the coaches.
Denali Christian College (DCC) is a public charity and a school under I.R.C. sections 501(c)(3) and 170(b)(1)(A)(ii). The Denali Kodiaks are athletic teams that represent DCC in several sports including basketball, volleyball, baseball, softball, tennis, and cross country.
Every coach (head coach and assistant coach) has an employment agreement with DCC. The coaches all receive athletic clothing from DCC (in school colors and with the DCC and/or Kodiak logo). Generally, these items of apparel are worn at games, practices, and other venues representing the College.
DCC’s CFO calls us to ask whether the value of this clothing is taxable to the coaches. We answer that – in most cases – according to the IRS, yes, it is.