Protecting Student Athletes from Unexpected Tax Liability Act
The source supplies the latest action, but no lifecycle stage.
Latest action (2 Sep 2026): Referred to the House Committee on Ways and Means.
What this bill does
H.R. 10236, the "Protecting Student Athletes from Unexpected Tax Liability Act," would amend the Internal Revenue Code to require automatic income tax withholding on payments college athletes receive for the commercial use of their name, image, and likeness (NIL). Under the bill, payors would withhold 30 percent of a NIL payment—whether in cash or in property/services valued at fair market value—and remit it as if the athlete were an employee receiving wages, even though the athlete remains classified as an independent contractor. Athletes could opt out of this withholding, and doing so would not affect their employment classification for other tax purposes.
The bill primarily affects student athletes enrolled full-time at institutions of higher education who compete in intercollegiate or varsity sports and receive NIL compensation, as well as the businesses or organizations that pay them. It also waives federal underpayment penalties for athletes newly subject to this withholding, for one year only. The changes would apply to payments made in tax years beginning after December 31, 2027.
The bill also directs the Treasury Secretary to report to the House Ways and Means and Senate Finance Committees by December 31, 2029, evaluating the costs, benefits, accuracy of the 30 percent rate, and compliance levels under the new withholding system.
Introduced September 2, 2026, by Rep. Terri Sewell (D-AL) with a cosponsor, the bill has been referred to the House Committee on Ways and Means. As a newly introduced measure, it would need committee consideration and votes in the House and Senate before it could become law.
Plain-English summary generated by Bill100 AI from the official record. Always verify against the source below.
Timeline
2 Sep 2026
Referred to the House Committee on Ways and Means.
Common questions
- What does H.R. 10236 do?
- H.R. 10236, the "Protecting Student Athletes from Unexpected Tax Liability Act," would amend the Internal Revenue Code to require automatic income tax withholding on payments college athletes receive for the commercial use of their name, image, and likeness (NIL). Under the bill, payors would withhold 30 percent of a NIL payment—whether in cash or in property/services valued at fair market value—and remit it as if the athlete were an employee receiving wages, even though the athlete remains classified as an independent contractor. Athletes could opt out of this withholding, and doing so would not affect their employment classification for other tax purposes. The bill primarily affects student athletes enrolled full-time at institutions of higher education who compete in intercollegiate or varsity sports and receive NIL compensation, as well as the businesses or organizations that pay them. It also waives federal underpayment penalties for athletes newly subject to this withholding, for one year only. The changes would apply to payments made in tax years beginning after December 31, 2027. The bill also directs the Treasury Secretary to report to the House Ways and Means and Senate Finance Committees by December 31, 2029, evaluating the costs, benefits, accuracy of the 30 percent rate, and compliance levels under the new withholding system. Introduced September 2, 2026, by Rep. Terri Sewell (D-AL) with a cosponsor, the bill has been referred to the House Committee on Ways and Means. As a newly introduced measure, it would need committee consideration and votes in the House and Senate before it could become law.
- Has H.R. 10236 become law?
- The source does not supply a confirmed lifecycle stage for H.R. 10236. Check the latest action and official source below.
- Who sponsored H.R. 10236?
- H.R. 10236 was sponsored by Rep. Sewell, Terri A. [D-AL-7] (D-AL), with 1 cosponsor.
- What's the latest action on H.R. 10236?
- Referred to the House Committee on Ways and Means. (2 Sep 2026).
Related bills in Taxation
End Tax Penalties on American Hostages Act
National Taxpayer Advocate Enhancement Act of 2025
Fair Play Enforcement Act
Healthy Communities Act of 2026
Bill100 mirrors the public U.S. legislative record from Congress.gov and GovTrack and adds plain-English AI summaries. It is an information tool, not legal, compliance or lobbying advice, and it is not affiliated with the U.S. Congress or any government agency. AI summaries can simplify or omit detail — every bill links to the official source; verify there before you rely on it.