Amid this tax season, it is important to remember that Uncle Sam is paying close attention to foreign athletes competing on U.S. soil. Depending on the extent of the athlete’s endorsements and activities in this country, the additional tax burden can be several hundred thousand dollars.
Just ask professional golfer Retief Goosen after his battle with the IRS last year over the characterization and source of his endorsement income. His case, which is under appeal, illustrates the tax difficulties facing global athletes. Although the court did not provide strict guidelines for determining the tax treatment of endorsement income, the decision gives some indication as to how the IRS may treat these cases in the future. Read the full article at the Sports Business Journal