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Politics July 22, 2026

IRS in the hot seat over potential cash grab from Spain's World Cup

IRS in the hot seat over potential cash grab from Spain's World Cup

Spain, as the reigning 2026 FIFA World Cup champions, earned $50 million in prize money for its victory.

Under U.S. tax law, income generated from activities performed in the United States is generally subject to federal taxation, with a standard withholding rate of 30 percent for certain payments to nonresident foreign athletes unless a tax treaty reduces that amount.

Representative Tim Burchett criticized the potential tax burden, calling it unfair and arguing that it sends the wrong message to international visitors and athletes who contribute to the U.S. economy.

Representative Jonathan Jackson echoed the concern, describing the possible 30 percent withholding as a symptom of a broader taxation system that places too much responsibility on workers while corporations benefit from loopholes.

Representative Burgess Owens, a former NFL player, said the experience of hosting the tournament deepened his appreciation for soccer and highlighted the value of such events for American youth.

The tournament’s total prize pool amounted to $871 million, with $655 million tied to on‑field performance, meaning any earnings received by teams for matches played in the United States are subject to the same tax considerations.

Lawmakers agree that while the tax code applies uniformly, the current rate may discourage future participation and spending by international athletes and fans.

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