Changes for 2005 1099-MISC Tax Reporting

	January 12, 2005
TO:	Selected NCAA Committee Members
FROM:	Keith E. Martin Managing Director of Finance and Operations
SUBJECT:	Changes for 2005 1099-MISC Tax Reporting

Currently, all items on the statement of expense form submitted by committee members are considered taxable by the NCAA.  Therefore, all items are included on a 1099 form sent to the committee members and the IRS.  This includes actual expenses as well as per diems, honorariums, and allowances.  Effective January 1, 2005, the NCAA will code only items such as per diems, fees, and honorariums, as taxable. We will no longer code reimbursement for actual expenses as taxable, as long as we can distinguish the actual expenses from per diem on the statement of expense form.  There has been no change in federal tax laws regarding this reporting.  However, this change in the procedures at the national office will simplify the process and year-end tax reporting for our committee members.  

As always, if your annual taxable income from the NCAA exceeds $600, a 1099-MISC form will be issued to you shortly after December 31.  This amount should be included on your annual income tax return.  It remains the responsibility of the recipient to keep track of actual expenses that have not been reimbursed by the Association in order to potentially reduce the tax liability.  

Should you have any questions, contact Tamara Gingerich, accounting manager, at 317/917-6439.

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