Indiana issues guidance on withholding for race teams

The Indiana Department of Revenue has issued a directive on tax withholding for race teams. The notice provides definitions and withholding requirements for prize money, compensation, salary, and bonuses. Specifically, any entity paying prizes based on an event conducted in a motorsports investment district (currently limited to the Indiana Motor Speedway), whether a race operator, a race track, a race team, or any other person or entity, must withhold a portion of the prize money remitted to any person or entity. Further, any payment of compensation, salary and/or bonuses by an employer or race team to a nonresident race team member must have tax withheld on the Indiana portion of the income. (Commissioner’s Directive No. 51, Indiana Department of Revenue, July 2014.)

For more information on this and other topics, consult the Visit our News Library.