IRS Compliance Guide
for Team Treasurers

The $600 Problem: Venmo, Zelle, and 1099-K

Here's the scenario every team treasurer accidentally walks into:

1. You volunteer to collect team money
2. You share your personal Venmo/PayPal
3. 17 families send you $800 each for the season
4. You receive $13,600 into your personal account
5. In January, you get a 1099-K from Venmo reporting $13,600 in "income"
6. The IRS now thinks you earned $13,600

What's the 1099-K Threshold?

As of 2025, payment platforms (Venmo, PayPal, Cash App, Zelle*) must report to the IRS when a user receives $600 or more in goods and services transactions during a calendar year.

*Zelle does not issue 1099-K forms, but the banks that process Zelle transactions may report them separately.

Year	1099-K Threshold	Notes
2022 and earlier	$20,000 AND 200+ transactions	Old threshold — very few volunteers were affected
2023–2024	$5,000 (transition)	IRS phased in the lower threshold
2025+	$600	Current threshold. Almost every team treasurer will exceed this.

Why This Matters for You

If you receive $600+ through a payment platform using your personal account:

• You will receive a 1099-K form
• That amount appears on your personal tax return as gross income
• You can offset it by reporting the corresponding expenses, but it's your burden to prove
• If your records are messy, you may pay unnecessary taxes on money that was never yours

The Fix: Separate Team Financial Accounts

The simplest solution is to never use personal accounts for team money. Here's how:

Option 1: Team Bank Account

• Open a checking account at a local bank in the team or club's name
• Requires an EIN (Employer Identification Number) — free from the IRS, takes 10 minutes online at irs.gov/ein
• Add the head coach or board president as a co-signer
• All team money flows through this account — no personal entanglement

Option 2: Club-Level Account

• Many clubs operate under a single organizational bank account
• Team treasurers submit expenses for reimbursement rather than handling cash directly
• This is the cleanest structure — but requires an organized club board

Option 3: Team-Specific Payment Platform

• Platforms like TeamSnap Pay, Blue Star Sports, or Sports Engine have team payment features
• Money goes to the team entity, not an individual
• Fees apply (typically 2–4%) but the liability protection is worth it

Record-Keeping Requirements

Whether you process $5,000 or $50,000, you need:

Record	Why	How Long to Keep
All income received (per family)	Proves what came in and from whom	3 years minimum
All expenses paid (with receipts)	Proves where money went	3 years minimum
Bank statements	Third-party verification of transactions	3 years minimum
Season budget vs. actuals	Shows responsible management	3 years minimum
Tournament confirmations / invoices	Supports major expenditures	3 years minimum

501(c)(3) Considerations

Some travel sports organizations operate as 501(c)(3) nonprofits. Here's what that means financially:

• Potential tax exemption on organizational income
• Donations may be tax-deductible for contributors (but not fees for services like coaching or ice time)
• Annual filing requirements: Form 990 (revenue over $50K), 990-EZ ($50K–$200K), or 990-N / e-Postcard (under $50K)
• Loss of status: Failing to file for 3 consecutive years automatically revokes 501(c)(3) status

Key distinction: Most individual travel teams are NOT 501(c)(3) organizations. The club might be, but team-level funds collected through a parent's Venmo are definitely not tax-exempt.

Common Treasurer Tax Mistakes

• Using personal Venmo/PayPal for $10K+ in team money. This is the #1 mistake and creates real IRS headaches.
• Not keeping receipts for cash expenses. Tournament food runs, ref tips, field permits — if there's no receipt, it didn't happen (according to the IRS).
• Mixing personal and team expenses. If you buy gas for the tournament and groceries on the same receipt, separate them.
• Not providing families with seasonal expense statements. This creates transparency and protects you from accusations.
• Assuming "it's just a youth sports team, the IRS won't care." They care. The $600 threshold was specifically designed to capture exactly this kind of transaction.

Your Treasurer Compliance Checklist

• ☐ Open a dedicated team bank account (not personal)
• ☐ Obtain an EIN for the team or club
• ☐ Never use personal Venmo/PayPal for team collections
• ☐ Keep all receipts (digital photos are fine)
• ☐ Track every dollar in and every dollar out
• ☐ Send families monthly or quarterly financial summaries
• ☐ File appropriate tax forms if revenue exceeds thresholds
• ☐ At season's end, produce a final financial report
• ☐ Keep records for a minimum of 3 years