Protecting Student Athletes from Unexpected Tax Liability Act

(a) In general. Not later than December 31, 2029, the Secretary shall report to the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate on the effects of the extension of withholding to payments to student athletes under section 3402(u) of the Internal Revenue Code of 1986 (as added by section 1), based on the most recent data that is available.

(b) Contents. The report described in subsection (a) shall include—

(1) the results of a study on the costs and benefits relating to automatic withholding on the behalf of student athletes,

(2) whether the 30 percent withholding rate was beneficial or accurate for the needs of most student athletes,

(3) the rate of payor compliance with the provisions of section 3402(u) of such Code (as so added), and

(4) such other information as the Secretary determines is relevant.

(c) Secretary. For purposes of this section, the term Secretary means the Secretary of the Treasury (or the Secretary’s delegate).