Lance Armstrong’s Race for Deductibility
One week ago, the International Cycling Union took away Lance Armstrong’s seven Tour de France titles he had earned in successive years from 1999 to 2005. In addition, the ICU is requiring Armstrong to return up to $16 million he had received for winning the Tour de France over those years.
Armstrong is a U.S. citizen and thus was required to report and pay U.S. income tax on his winnings. Upon returning the winnings, is he entitled to any relief for the taxes already paid?
The answer is probably, but not necessarily entirely.
Samuel D. Brunson, Assistant Professor of Law at Loyola University Chicago School of Law, explains in this paper titled Lance Armstrong and the Race for Deductibility.