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

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 ripoff," 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."SPAIN BEATS ARGENTINA TO WIN 2026 FIFA WORLD CUP BEHIND FERRAN TORRES' EXTRA-TIME GOALCongressman Tim Burchett speaks to reporters following a House Republicans conference meeting at the U.S.Capitol on July 23, 2024 in Washington, DC.

(Anna Moneymaker / Getty Images)Income earned from activities performed in America is generally, in almost all instances, taxable by the Internal Revenue Service (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.US LIFTS COSTLY VISA BOND REQUIREMENT FOR SOME WORLD CUP TRAVELERS, TRUMP ADMINISTRATION SAYSFrance fans celebrate after their team won the 2026 World Cup match between France and Sweden in the Brooklyn borough of New York City, on June 30, 2026.

(Photo by Leonardo MUNOZ / AFP via Getty Images)"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," he added.The Worl...

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