Senators Push IRS for Formal Guidance on NIL Tax-Exempt Status

Senators John Thune (R-S.D.) and Ben Cardin (D-Md.) want formal guidance that echoes an IRS advice memo saying organizations created to fund name, image, and likeness deals for college student-athletes won’t be considered tax-exempt.

The NCAA in 2021 began to allow student-athletes and recruits to benefit from use of their name, image, and likeness—or NIL—without impacting their eligibility. NIL collectives were established to help facilitate or fund NIL deals.

The IRS warned in a general legal advice memorandum on June 9 that many NIL collectives aren’t eligible for tax-exempt status.

• “The GLAM is an encouraging step forward and more should ...