IRS in the hot seat over potential cash grab from Spain's World Cup winnings: 'It's a ripoff'

As reigning 2026 FIFA World Cup champions, Spain won $50 million successful prize money, but a ample information of that could beryllium taxable to national taxes successful nan United States — perchance up to 30%.

"I deliberation it's a ripoff," Rep. Tim Burchett, R-Tenn., told Fox News Digital.

"I'm not a instrumentality of it, but Americans person to do it. American master athletes do it, truthful they knew that erstwhile they came complete here."

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Congressman Tim Burchett speaks to reporters pursuing a House Republicans convention gathering astatine nan U.S. Capitol connected July 23, 2024 successful Washington, DC. (Anna Moneymaker / Getty Images)

Income earned from activities performed successful America is generally, successful almost each instances, taxable by nan Internal Revenue Service (IRS). Under taxation rule successful nan U.S., definite payments to nonresident overseas athletes are mostly taxable to a 30% national withholding unless reduced by a taxation pact aliases a different exception.

"It's incorrect and that benignant of highlights thing bigger," Rep. Jonathan Jackson, D-Ill., said astir nan imaginable precocious taxation complaint connected Spain’s prize.

Burchett based on nan imaginable taxation load sends nan incorrect connection arsenic nan U.S. prepares to big much major world sporting events, saying nan state should beryllium encouraging overseas athletes and visitors to walk money domestically alternatively than subjecting them to steep taxation obligations.

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France fans observe aft their squad won nan 2026 World Cup lucifer betwixt France and Sweden successful nan Brooklyn borough of New York City, connected June 30, 2026. (Photo by Leonardo MUNOZ / AFP via Getty Images)

"I'm not a large instrumentality of nan IRS," Burchett said. "They made that money complete here, I guess, but I don't for illustration each that. We want to promote these group to travel complete present and walk their money, and past we return a large chunk of it.

"We've sewage to get a amended taxation system," he added.

The World Cup’s prize pool totaled $871 cardinal successful prize money, pinch $655 cardinal of that full relying connected capacity successful nan tournament. All teams that participated successful games successful nan U.S., moreover if nan only costs received was for participation, will person nan net taxed astatine immoderate amount.

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Jackson besides criticized nan broader U.S. taxation code, arguing that corporations should beryllium paying much successful taxes alternatively than workers. He referred to it arsenic a "class illustration of what’s incorrect pinch our taxation system."

"They should beryllium paying nan taxes arsenic opposed to having taxation loopholes," Jackson said. "The people, nan laborers that are working, they should not person to salary 30 percent of their income connected taxes."

Rep. Burgess Owens, R-Utah, agreed pinch his colleagues that nan imaginable 30% taxation connected nan prize is "too much," but he utilized nan opportunity to touch connected nan value of hosting nan World Cup successful America. As a retired NFL player, he shared really nan acquisition drew him to shot — a athletics he ne'er had immoderate liking successful anterior to nan World Cup.

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"I person specified an appreciation for shot now," Owens told Fox News Digital. "I deliberation it's going to beryllium a crippled changer for truthful galore of our kids. And truthful I want to congratulate nan president, everyone who made this happen."

"It is what it is here, unfortunately, successful our state of taxes."