What is a Sports Teams (community)?

6 Dec 2019

What is the definition of a sports team or teams in the eyes of the Internal Revenue Service? If you have a sports team as part of a community, where do they fit in regarding their tax status, what they are liable for versus not, etc? You want to think of the sports team or teams in the context of an amateur sports organization, which is what the Internal Revenue Service will view them as. Under the IRC 501©(3) exemption, you can end up in a situation where your amateur sports organization is tax-exempt.

For a sports team or community to be tax-exempt, it has to be education, teaching sports to the youth of America. It also has to be affiliated with another type of exempt educational organization. How the sports team is tax-exempt is that it is charitable in helping to battle things such as juvenile delinquency, thus reducing the burden on government and the judicial system over time.

In order to obtain a Tax ID for your Sports Team, you will have to complete the online Non-Profit Tax ID Application and select “Sports Team (community)” from the drop-down menu to obtain the appropriate federal Tax ID for your sports team.