IRS wants to score its share of Spain’s $50 million World Cup prize: If Americans have to …

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Bipartisan criticism erupted on Capitol Hill after lawmakers learned Spain’s $50 million FIFA World Cup championship prize could face substantial U.S. taxation because much of the tournament was played on American soil.
Tax experts say the issue extends well beyond Spain. Every foreign team, along with many coaches, staff, referees and athletes who earned income during the U.S.-hosted tournament, could face federal tax obligations, with additional state taxes possible depending on where matches were played.
The controversy is raising fresh questions about whether America’s tax system discourages future international sporting events and foreign investment.

IRS WANTS A CUT OF SPAIN’S WORLD CUP WINNINGS — AND EVEN CONGRESS IS CALLING FOUL

Spain may have lifted the FIFA World Cup trophy, but Washington may be preparing to lift a sizeable share of the winnings.

The newly crowned champions earned a $50 million first-place prize after defeating Argentina in the World Cup final. Because much of the tournament was played in the United States, however, a significant portion of that prize money could be subject to U.S. taxation under longstanding rules governing income earned by foreign athletes performing on American soil. Depending on treaty provisions and other factors, federal withholding can reach 30 percent before additional state taxes are considered.

The possibility has sparked an unusual moment of bipartisan agreement. “I think it’s a rip-off,” Rep. Tim Burchett, R-Tenn., told Fox News Digital. Burchett acknowledged that American athletes also pay taxes but questioned whether slapping foreign visitors with a hefty tax bill sends the right message.

“I’m not a fan of it, but Americans have to do it. American professional athletes do it, so they knew that when they came over here.”

He added:

“I’m not a big fan of the IRS. They made that money over here, I guess, but I don’t like all that. We want to encourage these people to come over here and spend their money, and then we take a big chunk of it. We’ve got to get a better tax system.”

Even Democratic Rep. Jonathan Jackson of Illinois criticized the potential tax burden.

“It’s wrong, and that kind of highlights something bigger.”

Jackson argued the controversy reflects broader problems within the U.S. tax code, saying workers often shoulder too much of the tax burden while corporations benefit from loopholes.

Rep. Burgess Owens, R-Utah, also questioned the size of the potential tax bite, calling a possible 30 percent rate “too much.” Owens nevertheless praised President Donald Trump and others involved in bringing the World Cup to the United States, saying the tournament introduced millions of Americans to soccer and would benefit future generations.

The issue extends far beyond Spain.

The World Cup distributed $871 million in prize money, with roughly $655 million tied directly to on-field performance. Every foreign team that earned prize money for matches played in the United States could face some level of federal taxation. Experts also note that athletes, coaches, referees and staff frequently encounter a maze of federal rules, international tax treaties and state “jock taxes” that can further complicate their obligations.

While Spain benefits from a tax treaty with the United States that may reduce some double taxation, tax specialists caution that treaty protections often become limited when earnings reach high-dollar thresholds such as World Cup prize money.

The IRS has already published extensive guidance for foreign participants in the 2026 World Cup, underscoring that international athletes, coaches, media personnel and related businesses may all have U.S. tax obligations connected to tournament activities.