Tax Web is Expanding
Athletes and entertainers pay millions every year to the states they visit. Now some states are tracking down CEOs and others who earn money on the road.
The list could include Sales Professionals, Truck Drivers, Attorneys, Business Professionals, Airline Pilots and Attendants, and anyone else whose job takes them outside of their home state boundaries, even of it is just a one day out of town meeting.
For instance, the mother of a professional Major League Soccer goalie who makes $26,000 a year, said she had to file tax returns in 10 states, with taxes due ranging from $200 all the way down to $2
State tax agencies have started targeting CEOs and other executives who travel and have been auditing corporations for their travel records. The trend has really surfaced in the last 18 months.
In the 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 3 other states; Illinois charged him $38,169 in taxes on the same income. The judge ruled against him because Illinois still had a right to his money.
The rest of us are next.
Fight or continued to get screwed.