OldSchoolFan
Cheesehead
Yea, back in the day the good old IRS was after the "Golden Boy" for not reporting earned income from the 1961 season. Whhhaaattt?
Sport magazine named Hornung the most outstanding player in the 1961 Championship Game, which led to a tax dispute that cemented the tax status of awards to athletes. Hornung was awarded a 1962 Corvette by Sport magazine, but the Corvette's fair market value was not included on his tax returns for either 1961 or 1962. Because it would have been impossible for Hornung to take possession of the Corvette in 1961 - the game was played on December 31st in Green Bay and the car was in a closed dealership in New York - it was determined that the car should have been included in income in 1962. More importantly for the athletic community, the court also determined that awards for achievement in the field of athletics do not fall under the exceptions provided under section 74(b) of the Internal Revenue Code. From this point on, it became impossible for athletes to exclude any awards they are given for athletics from their gross incomes.http://en.wikipedia.org/wiki/Paul_Hornung#cite_note-7
I am sure all of the poor pro athletes are still thanking Hornung for this little deal 50 years later!
http://en.wikipedia.org/wiki/Paul_Hornung#cite_note-7
Sport magazine named Hornung the most outstanding player in the 1961 Championship Game, which led to a tax dispute that cemented the tax status of awards to athletes. Hornung was awarded a 1962 Corvette by Sport magazine, but the Corvette's fair market value was not included on his tax returns for either 1961 or 1962. Because it would have been impossible for Hornung to take possession of the Corvette in 1961 - the game was played on December 31st in Green Bay and the car was in a closed dealership in New York - it was determined that the car should have been included in income in 1962. More importantly for the athletic community, the court also determined that awards for achievement in the field of athletics do not fall under the exceptions provided under section 74(b) of the Internal Revenue Code. From this point on, it became impossible for athletes to exclude any awards they are given for athletics from their gross incomes.http://en.wikipedia.org/wiki/Paul_Hornung#cite_note-7
I am sure all of the poor pro athletes are still thanking Hornung for this little deal 50 years later!
http://en.wikipedia.org/wiki/Paul_Hornung#cite_note-7