The IRS' Double-Bogey: Goosen v Commissioner Remains a Fairway to Characterize Endorsement Income for Nonresident Alien Athletes in Garcia v Commissioner

26 Pages Posted: 22 Aug 2013  

Seth William Stern

Independent

Date Written: June 1, 2013

Abstract

The article discusses the taxation by the United States of endorsement income earned by non-resident alien athletes worldwide. Specifically, it tracks the evolution of relevant jurisprudence through its culmination in the recent Tax Court decision, Garcia v. Commissioner of Internal Revenue, which builds upon its previous Goosen v. Commissioner of Internal Revenue. In doing so, the article notes the specific changes over time essential to distinguishing whether earnings should be classified as "endorsement" or "personal services" income, and whether they are "effectively connected" with a U.S. trade or business for tax purposes. Moreover, the author argues the need for a balance between the ability to promote domestic events and the ability for governments to adequately collect tax on income earned domestically, and how an imbalance recently caused issues in the United Kingdom leading up to the 2012 London Olympic Games.

Keywords: Taxation, Athletes, Sports Law, Endorsement Income, Personal Services Income

JEL Classification: K34

Suggested Citation

Stern, Seth William, The IRS' Double-Bogey: Goosen v Commissioner Remains a Fairway to Characterize Endorsement Income for Nonresident Alien Athletes in Garcia v Commissioner (June 1, 2013). Villanova Sports and Entertainment Law Journal, Vol. 20, No. 605, 2013. Available at SSRN: https://ssrn.com/abstract=2313947

Seth William Stern (Contact Author)

Independent ( email )

No Address Available

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