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Certain Overseas Players Need To Report Foreign Bank Account Information

We take taxes seriously here at Sports Agent Blog, and agents across the board should do the same.  A gross majority of professional athletes have not been schooled on foreign and domestic tax laws, and even if they were, they would not have the time to deal with the various matters that confront them with regards to taxes.  Thus, as agents, it is important to either have the acumen to handle tax issues ourselves or find tax professionals who can assist athletes in complying with the law.

Here are some archived Sports Agent Blog tax related posts worth taking a look at:

Recently, David Collier informed me of a new IRS rule that requires reporting of foreign bank accounts, which may affect American basketball and baseball players who are playing in a professional league overseas.  Collier is a sports and entertainment attorney based in New York, New York.

The rule requires U.S. citizens who had foreign bank account(s), that combined exceeded $10,000 (or the equivalent of $10,000 in a foreign currency) at any point in time in 2010,  to report the account(s) to the IRS.

Thus, even if the account(s) did not retain a balance of $10,000 throughout 2010, and even if on December 31, 2010, the account(s) had less than $10,000, so long as the foreign bank account(s) had $10,000 or more at any point of the year, those accounts must be reported.  Importantly, account values are combined if the person had more than one account at any given time.

Many American athletes do not decide to open up bank accounts outside of the United States, but this piece of information is very useful to pass along to those who do elect to invest money into foreign bank accounts.

By Darren Heitner

Darren Adam Heitner, Esq., is a preeminent sports attorney and the founder of Heitner Legal, P.L.L.C., a Fort Lauderdale-based law firm specializing in sports law, contract negotiations, intellectual property, and arbitration. He earned his Juris Doctor from the University of Florida Levin College of Law in 2010 and a Bachelor of Arts in Political Science, magna cum laude, from the University of Florida in 2007, where he was named Valedictorian of the College of Liberal Arts and Sciences. Admitted to practice in the state bars of Florida, New York, and the District of Columbia, as well as multiple federal courts, Darren also serves as a certified arbitrator with the American Arbitration Association.

As an adjunct professor, Darren imparts his expertise through teaching Sports Law at the University of Florida Levin College of Law and Name, Image, and Likeness (NIL) at the University of Miami School of Law in the Entertainment, Arts, and Sports Law LL.M. program. His scholarly contributions include authoring several books published by the American Bar Association, such as How to Play the Game: What Every Sports Attorney Needs to Know, and numerous articles in prominent publications like Forbes, Inc. Magazine, and Above the Law. His thought leadership in NIL has earned him recognition as one of the foremost experts by The Wall Street Journal, USA TODAY, and On3, and he has been lauded as a “power player in NIL deals” by Action Network and a “top sports trademark attorney” by Sportico.

Darren’s passion for sports law led him to establish Sports Agent Blog on December 31, 2005, initially titled “I Want To Be A Sports Agent.” The platform, created as a New Year’s resolution, has grown into a cornerstone of the sports agency community, offering in-depth analysis of industry trends, legal disputes, and agent-player dynamics. His commitment to the field is further evidenced by his representation of numerous athletes and sports agents, as well as his prior role as an Adjunct Professor at Indiana University Bloomington, where he developed and taught a course on Sport Agency Management from 2011 to 2014.

Darren’s contributions have been recognized with prestigious honors, including the University of Florida’s 40 Under 40 Award, the University of Florida Levin College of Law’s Outstanding Young Alumnus Award, and designation as the best lawyer in Fort Lauderdale by Fort Lauderdale Magazine. He remains an active voice in the sports law community, sharing insights through his weekly NIL newsletter and his X posts, engaging a broad audience on legal developments in sports.

One reply on “Certain Overseas Players Need To Report Foreign Bank Account Information”

A reader of the site made a great comment in an email to me regarding this post. He quoted my statement of, “Many American athletes do not decide to open up bank accounts outside of the United States, but this piece of information is very useful to pass along to those who do elect to invest money into foreign bank accounts.”

His response is that, “They do have foreign bank accounts (and likely have to) if they play for the Blue Jays, Raptors or a Canadian based NHL team. This will probably apply to a lesser extent to MLS teams.”

Very valid point, and one we often forget. Even in domestic based leagues, there are foreign teams based in Canada. The tax law still applies to our northern neighbor.

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