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

As reigning 2026 FIFA World Cup champions, Spain won $50 million in prize money, but a large portion of that could be subject to federal taxes in the United States — potentially up to 30%.

“I think it’s a rip-off,” Rep. Tim Burchett, R-Tenn., told Fox News Digital.

“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.”

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Income earned from activities performed in America is generally, in almost all instances, taxable by the IRS. Under tax law in the U.S., certain payments to nonresident foreign athletes are generally subject to a 30% federal withholding unless reduced by a tax treaty or a different exception.

“It’s wrong, and that kind of highlights something bigger,” Rep. Jonathan Jackson, D-Ill., said about the potential high tax rate on Spain’s prize.

Burchett argued the potential tax burden sends the wrong message as the U.S. prepares to host more major international sporting events, saying the country should be encouraging foreign athletes and visitors to spend money domestically rather than subjecting them to steep tax obligations.

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“I’m not a big fan of the IRS,” Burchett said. “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.”

The World Cup’s prize pool totaled $871 million, with $655 million of that total relying on performance in the tournament. All teams that participated in games in the U.S., even if the only payment received was for participation, will have the earnings taxed at some amount.

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Jackson also criticized the broader U.S. tax code, arguing that corporations should be paying more in taxes rather than workers. He referred to it as a “classic example of what’s wrong with our taxation system.”

“They should be paying the taxes as opposed to having tax loopholes,” Jackson said. “The people, the laborers that are working, they should not have to pay 30% of their income on taxes.”

Rep. Burgess Owens, R-Utah, agreed with his colleagues that the potential 30% tax on the prize is “too much,” but he used the opportunity to touch on the importance of hosting the World Cup in America. As a retired NFL player, he shared how the experience drew him to soccer, a sport he never had any interest in prior to the World Cup.

“I have such an appreciation for soccer now,” Owens told Fox News Digital. “I think it’s going to be a game changer for so many of our kids. And, so, I want to congratulate the president, everyone who made this happen.

“It is what it is here, unfortunately, in our country of taxes.”

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