LONDON — Olympians are paying a hefty price to the IRS for the pieces of metal they work their entire lives to achieve, according to a report.
Citing data produced by Americans for Tax Reform, the Weekly Standard is reporting that the IRS is enabled to take a nice chunk of dough from some of the world’s top athletes thanks to the prize money awarded to medal winners by the U.S. Olympic Committee.
The report states that medal-winners receive $25,000 for a gold medal, $15,000 for silver and $10,000 for bronze. The IRS, the report states, takes a cut of about 35 percent on each medal prize — $8,986 for gold, $5,385 for silver and $3,500 for bronze.
That means Colorado’s Missy Franklin, a Regis High School student who’s yet to make any money on endorsements, already owes over $21,000 in taxes for the three medals — two gold and one bronze — she has nabbed.
And Franklin still has three more events to go. She’s favored to win the gold in two.
But what about athletes from other countries? Most of them get off without paying any taxes, according to the report, because the U.S. is one of only a handful of countries that requires taxes to be paid on prize income earned overseas.