,i  #aai? ,,congress  #b;d ,session  ,h4
 ,r4 #ajbcf  ,,9 ,,! ,,h\se ,,(         
,,repres5tatives  ,septemb] #b1         
#bjbf,ms4 ,sewell 7= h]self & ,mr4      
,davis ( ,ill9ois7 introduc$ ! foll[+   
bill2 :i* 0 ref]r$ to ! ,committee on   
,ways & ,means  ,a ,,bill  ,to am5d !   
,int]nal ,rev5ue ,code ( #aihf to       
require income tax )hold+ at ! s\rce =  
"n1 image1 & lik5ess paym5ts to         
indep5d5t contractors :o are /ud5t      
a?letes4  #a4 ,%ort title ,?is ,act may 
be cit$ z ! ,protect+ ,/ud5t ,a?letes f 
,unexpect$ ,tax ,liability ,act4  #b4   
,collection ( income tax at s\rce = "n1 
image1 & lik5ess paym5ts to /ud5t       
a?letes  7a7 ,9 g5]al ,section #cdjb ( !
 ,int]nal ,rev5ue ,code ( #aihf is am5d$
 by add+ at ! end ! foll[+ new          
subsection3  7u7 ,ext5sion ( )hold+ to  
c]ta9 paym5ts to /ud5t a?letes classifi$
 z n employees  7#a7 ,9 g5]al ,=        
purposes ( ?is *apt] & s mu* ( subtitle 
,f z relates to ?is *apt]1 any "n1      
image1 & lik5ess paym5t to a /ud5t      

a?lete %all be treat$ z if x 7 a paym5t 
( wages by an employ] to an employee4   
7#b7 ,am\nt )held  7,a7 ,9 g5]al ,!     
am\nt to be d$uct$ & )held "u ?is *apt] 
f any paym5t to :i* p>agraph 7#a7       
applies %all be an am\nt equal to #cj   
p]c5t ( ! am\nt ( su* paym5t4  7,b7     
,non-ca% remun]ation ,9 ! case (        
remun]ation o!r ?an ca%1 ! am\nt to be  
)held "u ?is *apt] %all be an am\nt     
equal to #cj p]c5t ( ! fair m>ket value 
( su* remun]ation on ! date ( transf] f 
! payor to ! payee4  7#c7 ,"n1 image1 & 
lik5ess paym5t ,! t]m "n1 image1 &      
lik5ess paym5t means remun]ation to a   
/ud5t a?lete 9 ca%1 prop]ty1 or s]vices 
= ! comm]cial use ( su* /ud5t's "n1     
image1 or lik5ess4  7#d7 ,def9itions ,= 
purposes ( ?is subsection-- 7,a7 ,/ud5t 
a?lete ,! t]m /ud5t a?lete means an     
individual :o is enroll$ z a full-"t    
/ud5t at an in/itution & :o--  7i7 makes
 satisfactory progress t[>ds complet+ a 
degree1 &  7ii7 p>ticipates 9           
int]collegiate a?letic competition or   

competes = a v>sity sports team z "p ( !
 in/itution's educational1 developm5tal1
 or extracurricul> programs4  7,b7      
,in/itution ,! t]m in/itution has !     
mean+ giv5 ! t]m in/itution ( high]     
education "u section #aja ( ! ,high]    
,education ,act ( #aife4  7#e7 ,work]   
classification ,)hold+ "u ?is subsection
 %all n be tak5 into acc\nt 9 det]m9+   
:e!r ! payor or payee ( a "n1 image &   
lik5ess paym5t is an employee or an     
employ] = purposes ( ?is title4  7#f7   
,exception ,a payee may elect to h      
p>agraph 7#a7 n apply1 & su* election   
%all rema9 9 effect until ! taxpay]     
t]m9ates su* election4  7#g7            
,regulations ,! ,secret>y %all prescribe
 su* regulations or o!r guidance z may  
be necess>y or appropriate to c>ry out  
?is subsection4  4  7b7 ,waiv] (        
und]paym5t p5alty = new /ud5t a?letes   
,section #ffed7;e7 ( su* ,code is am5d$ 
by add+ at ! end ! foll[+ new p>agraph3 
7#d7 ,new /ud5t a?letes ,no addition to 
tax %all be impos$ "u subsection 7a7 )  

respect to any und]paym5t if ! ,secret>y
 det]m9es--  7,a7 t ! taxpay] is a /ud5t
 a?lete ) respect to :om section        
#cdjb7u7 applies = ! taxable ye>1 &     
7,b7 t ! addition to tax 0 n waiv$ "u   
?is p>agraph ) respect to ! taxpay] =   
any prior taxable ye>4  4  7c7          
,effective date ,! am5dm5t made by ?is  
section %all apply to paym5ts made 9    
taxable ye>s beg9n+ aft] ,decemb] #ca1  
#bjbg4  #c4 ,,irs ,report  7a7 ,9 g5]al 
,n lat] ?an ,decemb] #ca1 #bjbi1 !      
,secret>y %all report to ! ,committee on
 ,ways & ,means ( ! ,h\se (             
,repres5tatives & ! ,committee on       
,f9ance ( ! ,s5ate on ! effects ( !     
ext5sion ( )hold+ to paym5ts to /ud5t   
a?letes "u section #cdjb7u7 ( ! ,int]nal
 ,rev5ue ,code ( #aihf 7z add$ by       
section #a71 bas$ on ! mo/ rec5t data t 
is available4  7b7 ,cont5ts ,! report   
describ$ 9 subsection 7a7 %all include--
 7#a7 ! results ( a /udy on ! co/s &    
b5efits relat+ to automatic )hold+ on ! 
behalf ( /ud5t a?letes1  7#b7 :e!r ! #cj

 p]c5t )hold+ rate 0 b5eficial or       
accurate = ! ne$s ( mo/ /ud5t a?letes1  
7#c7 ! rate ( payor compliance ) !      
provisions ( section #cdjb7u7 ( su*     
,code 7z s add$71 &  7#d7 su* o!r       
in=mation z ! ,secret>y det]m9es is     
relevant4  7c7 ,secret>y ,= purposes (  
?is section1 ! t]m ,secret>y means !    
,secret>y ( ! ,treasury 7or !           
,secret>y's delegate74