IRS Tax Claims on FIFA World Cup Prize Money Debunked

Recent social media claims allege that the U.S. Internal Revenue Service (IRS) deducted 30 percent, approximately $15 million, from Spain's FIFA World Cup championship prize of $50 million, and that Argentina, as runners-up, also faced similar deductions due to the final being held in New Jersey.

An analysis by Paul Lucky Okoku reveals no official evidence supporting these claims. The article clarifies that while foreign players or teams may have U.S. tax obligations, the viral assertions oversimplify complex tax laws.

It distinguishes between withholding and final tax liability, noting that withholding is an advance payment and not the final tax amount owed. The article emphasizes that different taxpayers, including FIFA, national football associations, and individual players, may be subject to varying tax treatments, further complicating the issue.