CCH Tax Day Report
Rep. Bob Dold, R-Ill., has announced that he will introduce the United States Appreciation for Olympians and Paralympians Bill for immediate House consideration. “Ways and Means will consider this bill when we return in September,” a House staffer told Wolters Kluwer.
The bill, co-sponsored by Rep. Blake Farenthold, R-Tex., would exempt the value of Olympic and Paralympic medals and monetary awards from an athlete’s taxable income. The measure would retroactively apply to the 2016 Olympic and Paralympic Games in Brazil, according to Dold.
“When they (athletes) return home with a medal for Team USA, the IRS forces the athletes to pay a penalty for their success,” Dold said in a statement. “Our bill will prevent the IRS from penalizing Team USA’s champions and ensure that our athletes can remain focused on fulfilling their Olympic dreams without fear of the tax consequences.”
Ways and Means Chairman Kevin Brady, R-Tex., has indicated the bill will move forward in September when the House reconvenes. “It seems like a small thing, but when America’s Olympians and Paralympians bring home the gold, our nation should congratulate them—not send the IRS to claim a share of their medal,” Brady said in a statement. “This common-sense bill has strong public support, and I’m looking forward to working with congressional leaders Bob Dold and Blake Farenthold to move it through our committee in September,” he added.
The Senate approved the United States Appreciation for Olympians and Paralympians Bill (Sen 2650) by unanimous consent on July 12 (TAXDAY, 2016/07/14, C.1). The bipartisan bill, sponsored by Sens. John Thune, R-S.D., and Charles E. Schumer, D-N.Y., would amend Code Sec. 74 by adding an exception to the general rule that gross income includes amounts received as prizes and awards.
By Jessica Jeane, Wolters Kluwer News Staff
Press Release: Dold Unveils Bill to Eliminate Tax Penalty on Team USA Medalists