Boxer Mayweather and the IRS are even-steven | AccountingWEB

Boxer Mayweather and the IRS are even-steven

Just days ago, boxer Floyd Mayweather earned $10 million, plus pay-per-view percentages, when he fought Juan Manuel Marquez. But most of that giant purse will go to fulfill his back tax obligations. The IRS was supposed to have filed a levy with the Nevada Athletic Commission for $5.6 million ($4.7 million in back payment, plus penalties) on income earned in 2007.

 

Details of how payment was secured are skimpy.  The levy that was supposed to be filed, per an agreement between Mayweather and the IRS, was intended as a sort of collateral… a way to ensure payment. The levy was not applied because payment was made in full before Mayweather stepped into the ring.

 

Mayweather’s tax attorney, Jeffrey Morse told reporters, “He does not owe a dime to the IRS.” 

There is still a lien on the books, in the amount of $6.17 million, but this payment agreement satisfied the debt and the lien will be lifted.

 

Morse refuted the rumor that is circulating which suggests the tax bill was paid by Oscar de la Hoya, leaving Mayweather indebted to de la Hoya instead of the IRS.

"He came out of retirement and showed he's an excellent taxpayer and fighter, and I think there's something good to that,” says Morse.

 

"This whole thing is getting out of hand, actually," Morse said. "He's a boxer. He has to pay his taxes just like anybody else. The levy was never executed and it never was going to be executed. The fact that it was going to be levied at all was mutually agreed on by the IRS and Floyd.

 

"I can only say Floyd has been noble in fulfilling his obligation and, unfortunately, not a lot of people are focusing on that."