Michael Clark Proves That (20/10 Vision) Does Exist In The Basketball World
If you don’t know Michael Clark then it’s about time you get...
Piascik, president of Piascik & Associates, a Virginia accounting firm with a practice that specializes in working with pro athletes.
“Typically, they’re not going to pay any more tax,” said Piascik, who added that states are within their rights to collect the tax. “Overall, as I tell my clients, it’s an administrative burden.” Taxed twice In the most extreme cases, the jock tax can lead to double taxation. In 2003, slugger Sammy Sosa, then with the Chicago Cubs, sued the state of Illinois because it denied the tax credits he paid for income taxes paid elsewhere. In 1998, he paid a total of $65,316 in taxes to California, New York and three other states; Illinois charged him $38,169 in taxes on the same income. He lost the case, even though the judge agreed that double taxation was taking place. But the judge ruled that Illinois had the right to collect 100% of the taxes paid by athletes who are Illinois residents and play for teams based in the state. The state department of revenue said Sosa should have lodged his complaint against the five other states that taxed him. “For us, it’s a compliance outrage, and it’s a sign of just how far the states will go in their desperation for additional revenues,” Ahern of the Tax Foundation said. Overall, the Tax Foundation argues, nonresident taxes are a wash for the 24 states with major league professional sports teams, because the tax and the accompanying credits basically cancel each other out. Some higher-tax states, such as California, come out as net winners, while some states lose out (and states like Washington and Florida, without a state personal income tax, stand above the fray). The national Federation of Tax Administrators disputes that there are separate tax laws, such as a “jock tax,” that target a specific profession. There is abundant evidence, however, that athletes are singled out for enforcement of nonresident taxes — and that they are paving the way for other high-profile professions. The Tax Foundation has called for the abolishment of the jock tax. The Federation of Tax Administrators has supported efforts by state tax agencies, professional teams and player associations to develop rules for a fairer and simpler apportionment of a nonresident athlete’s income.