The taxation of professional athletes is widely recognized as among the most complex individual tax situations in practice. A professional basketball player, for example, may play games in 25 to 30 different states during a single season, each of which may assert taxing jurisdiction over a portion of the athlete's income based on the number of "duty days" — days spent in that state for work purposes — relative to total duty days in the year. The resulting multistate filing obligation can involve 15 to 30 individual state returns for a single client.
For the CPA firms and business managers who serve these clients, managing the underlying data and documentation that drives these returns is a major operational challenge. Increasingly, that challenge is being addressed with virtual assistant support.
The Jock Tax Landscape
The so-called "jock tax" — the practice of states and localities taxing nonresident athletes on income earned within their jurisdiction — has expanded significantly since California began the practice in 1991. Today, most states with professional sports teams impose nonresident income tax on visiting athletes, and several cities (including Philadelphia, Cleveland, Columbus, and Detroit) impose municipal-level income taxes as well.
The specific calculation methodology varies by state. Some states use the "games played" method (income allocated based on games played in the state as a fraction of total games), while others use a "duty days" method that counts all days the athlete was present in the state for work purposes, including practices and pre-season activities. The American Institute of CPAs (AICPA) has published guidance on the variability of these approaches and the documentation required to support each method under audit.
The rise of name, image, and likeness (NIL) deals — initially for college athletes following the NCAA's 2021 policy change, and now a permanent feature of college sports — has added another layer of income sourcing complexity. NIL deals may be sourced to a specific state based on where services were performed or where the licensee is located, depending on the applicable law.
How Virtual Assistants Support Athlete Tax Practices
Duty day tracking. The foundation of multistate athlete tax returns is an accurate duty day log for every state the athlete visited during the year. VAs compile travel records, team schedules, game logs, and practice facility records to build and verify the duty day count for each state. They cross-reference this data against the team's official schedule and flag discrepancies for the advisor's review.
Endorsement and NIL income documentation. Athletes receive income from multiple endorsement deals, licensing agreements, and appearance fees throughout the year. VAs collect contracts, 1099 forms, direct payment records, and advance documentation from agents and business managers, organizing by income type and sourcing information for each deal.
State return preparation support. Once the duty day log and income documentation are complete, multistate return preparation can proceed. VAs assemble the state-level data packages — including the duty day count, income allocation, and supporting documentation — for each state return on the filing list, reducing the preparation time for each individual return.
State and local notice management. High-profile athletes routinely receive inquiries, notices, and audit requests from state and local revenue departments challenging duty day counts or income allocation methods. VAs log each notice, calendar response deadlines, and route correspondence to the appropriate advisor with supporting documentation attached.
Business manager coordination. Athletes are typically represented by agents and business managers who serve as intermediaries between the athlete and their tax advisors. VAs manage communication with these intermediaries, track document requests sent to business management offices, and follow up on outstanding items.
Market Context
The Bureau of Labor Statistics does not separately track athlete tax specialists, but the sports management and representation industry serves approximately 18,000 professional athletes across the major U.S. sports leagues, plus an expanding population of college athletes receiving NIL compensation and minor league and international players with U.S. tax obligations.
CPA firms specializing in this niche — such as those affiliated with the Sports Financial Advisors Association (SFAA) — typically serve athletes from multiple sports and leagues simultaneously, creating a concentrated document management challenge during tax season. Virtual assistants trained in sports tax terminology and workflow can materially increase a firm's capacity to serve more athlete clients without adding senior staff.
Athlete tax advisory firms ready to improve throughput can explore VA staffing at Stealth Agents.
Sources
- American Institute of CPAs (AICPA), Multistate Taxation of Professional Athletes, 2024
- NCAA, NIL Policy and Implementation, 2025
- Sports Financial Advisors Association (SFAA), Industry Overview, 2025
- Bureau of Labor Statistics, Sports Occupations Data, 2025
- Tax Foundation, Jock Tax State-by-State Overview, 2024