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This bill amends the Internal Revenue Code to require employers and other payors to withhold federal income tax at a 30 percent rate on name, image, and likeness (NIL) payments made to student athletes. The bill treats NIL payments as wages for withholding purposes while clarifying that this withholding does not affect worker classification. It also waives underpayment penalties for student athletes in their first year subject to the withholding requirement and requires the IRS to report on the effects of the withholding provision by December 31, 2029.
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