IRS knocks out two boxing legends | AccountingWEB

IRS knocks out two boxing legends

Thomas “Hitman” Hearns, who earned more than $40 million in his legendary boxing career, may find himself homeless soon, proving that it’s not just ordinary folks who are dealing with the threat of foreclosure.
 
Hearns, 51, and his wife owe more than $961,156 in delinquent taxes and mortgage payments. Of that, nearly $513,000 is owed on the couple’s home in Southfield, Michigan. The former champion has scheduled an estate auction on April 3 to pay off his debt to the Internal Revenue Service, according to several Detroit media outlets.
 
Michael J. Smith, Hearns’s attorney, told reporters it wasn’t clear how the boxing champion found himself in the middle of such deep financial problems.
 
"Tommy's going to resolve the house issue," Smith said. "Tommy's doing fine. It's just an unfortunate issue that we're dealing with and we're working to get it resolved right away."
 
Smith added that Hearns and his wife are trying to work out payment on the home and they are paying down the tax debt. If the house is foreclosed upon, Hearns will have six months to reclaim the house. "We're trying to get a bottom line figure of what Tommy believes he owes," Smith said. "That's why it's taken a little bit long."
 
Here’s what they owe:
  • $512,965 on their mortgage
  • $5,148 lien against Hearns and his wife for unpaid state income taxes
  • $145,478 lien filed by the IRS for unpaid income taxes from 2006
  • $90,825 lien filed by the IRS for unpaid income taxes from 2007
  • $206,740 lien filed by the IRS for unpaid income taxes from 2006
 
Evander Holyfield on the IRS ropes
 
Four-time heavyweight champion Evander Holyfield has had more than his share of problems paying the mortgage. Now a lien for unpaid federal income tax has been filed against him to the tune of more than $145,000.
 
What seems to have him tapped out is child support for his son, Elijah. Holyfield recently filed papers in Cobb County, Georgia to get the child support payments reduced because of a decline in his income in recent years.
 
Long-time friends of Holyfield speculate that the spending habits of his ex-wife, Janice Iston, may have played a big part in Holyfield’s financial distress. The couple has been divorced since 2000.
 
About the time Holyfield asked the court to reconsider his child support payments, Iston filed a lawsuit against him in Texas (where Holyfield owns property) looking to collect $280,000 in past-due child support and interest. She previously filed a lawsuit in Georgia on the same obligation.
 
The lien against Holyfield was filed in August 2009, in Fayette County, Georgia. According to the lien, he owes $145,469 in taxes from 2000, 2005, 2007, and 2008.
 
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