Sponsors
The bill extends U.S. taxation and reporting rules to certain cross-border athletic income, increasing federal revenue and clarity for taxpayers while imposing higher taxes on athletes and added compliance burdens for payers and intermediaries.
Cross-border athletes and related payees: income from certain foreign athletic activities will be subject to U.S. tax, giving the Treasury/IRS a statutory basis to collect additional federal revenue.
Athletes and other affected taxpayers: the bill creates clearer tax rules for specified foreign athletic income, reducing ambiguity about reporting obligations.
Athletes and related payees: will pay additional federal taxes on covered foreign athletic income after enactment, reducing their net earnings.
Athletes, agents, payers, financial institutions, and the IRS: will face new withholding, reporting, and compliance costs, increasing administrative burden and compliance expenses.
Based on analysis of 4 sections of legislative text.
Imposes a new federal tax on income earned by individuals competing internationally on behalf of designated foreign entities of concern.
Imposes a new federal tax on income earned by people who compete in international athletic events on behalf of specified foreign entities of concern. The change is added to the Internal Revenue Code’s Subtitle D and applies to amounts received after the law takes effect. Key details (tax rate, exact definition of "foreign entities of concern," reporting and withholding rules) are not included in the excerpt.
Introduced February 25, 2026 by Andy Ogles · Last progress February 25, 2026