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."

You may like these other stories...

Did you know that the tax code allows you to claim tax deductions for household damage caused by thefts, vandalism, fires, floods, hurricanes, and others kinds of casualties? But the law imposes several restrictions.Relief...
Inversions: Loophole Is the ProblemJacob J. Lew, the U.S. Treasury Secretary, published an opinion piece in the Wall Street Journal that "the system has become full of inefficiencies and special-interest loopholes. That...
School tax breaks get House support as Democrats objectRichard Rubin of Bloomberg reported that the House of Representatives on Thursday voted to expand and simplify tax breaks for education as Republicans continue to pass...

Upcoming CPE Webinars

Jul 31
In this session Excel expert David Ringstrom helps beginners get up to speed in Microsoft Excel. However, even experienced Excel users will learn some new tricks, particularly when David discusses under-utilized aspects of Excel.
Aug 5
This webcast will focus on accounting and disclosure policies for various types of consolidations and business combinations.
Aug 20
In this session we'll review best practices for how to generate interest in your firm’s services.
Aug 21
Meet budgets and client expectations using project management skills geared toward the unique challenges faced by CPAs. Kristen Rampe will share how knowing the keys to structuring and executing a successful project can make the difference between success and repeated failures.