NIL changed the athlete’s legal identity. In this Legal Watch TAX WATCH Special, Lee Walpole Lassiter breaks down how the IRS treats NIL income, why no 1099 does not mean no tax problem, how constructive receipt can create liability before an athlete ever touches the money, why free perks can still be taxable, how agent fraud can become a tax disaster, when Section 165 theft-loss analysis may matter, how Form 8275 fits into penalty protection, and why multi-state and international NIL deals demand real legal planning.

This episode is built for athletes, families, collectives, attorneys, agents, and anyone trying to understand the tax side of modern athlete compensation. The IRS generally treats NIL as taxable income, with many service-based deals reported on Schedule C and some royalty-type income reported on Schedule E; the IRS also states that a TPSO Form 1099-K generally is not required unless payments exceed $20,000 and 200 transactions, while NCAA NIL Go reporting uses a separate $600 compliance threshold for certain third-party deals.

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Disclaimer: This episode is for educational and informational purposes only and does not create an attorney-client relationship or constitute legal or tax advice.