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

What the report says

Fox News reported that Spain’s $50 million prize for winning the 2026 FIFA World Cup could be exposed to U.S. federal tax withholding because the tournament included matches played in the United States. The report said payments tied to activities performed in the U.S. are generally taxable, and that nonresident foreign athletes can face a 30% withholding rate unless a treaty provision or other exception reduces it.

The potential IRS claim drew criticism from lawmakers in both parties. Rep. Tim Burchett, R-Tenn., told Fox News Digital he viewed the situation as unfair, while also noting that American professional athletes face similar tax obligations. Rep. Jonathan Jackson, D-Ill., used the issue to criticize the broader tax system, saying workers should not bear heavy tax burdens while corporations benefit from loopholes. Rep. Burgess Owens, R-Utah, also described a possible 30% tax as excessive, while emphasizing the value of the World Cup being hosted in the U.S.

According to the Fox News account, the World Cup prize pool totaled $871 million, including $655 million tied to team performance. The report said all teams that played games in the U.S. could have at least some tournament-related income taxed, even if their payments were only for participation.

The dispute matters because it highlights how U.S. tax rules can affect international athletes and teams when major global sports events are held on American soil. Fox framed the issue as part of a wider debate over whether the U.S. tax code discourages foreign competitors and visitors from spending money in the country.