Floyd Mayweather Jr. Faces a Possible IRS Knockout
His nickname is “Money”. No athlete in the world earns more than boxer Floyd Mayweather Jr. Consider these amazing numbers. The undefeated welterweight champion of the world is expected to earn at least $100 million for his upcoming fight against MMA star Conor McGregor. Should he meet several clauses in his contract, Mayweather is likely to take home a staggering $400 million–not bad for one night’s work. Although he has never lost a fight, Mayweather may be on collision course with another unbeatable opponent—the IRS.
A Showdown with the IRS
Floyd Mayweather Jr. has earned $700 million during his remarkable career. Despite his massive income, he owes IRS more than $22 million in back taxes. According to Law 360, Mayweather has made a request with the government to pay back his tax liability by enrolling in a “short-term installment agreement under three months”. Mayweather has already been issued an IRS tax lien.
The Consequences of Tax Liens
The lien was originally issued to Mayweather back in 2015 after he fought Manny Pacquiao. While countless people in Fort Lauderdale are currently facing IRS tax liens, Mayweather’s case is far more complicated. Because of his huge earnings, Mayweather’s IRS problems involve more than simply paying back taxes. Much of the money he owes was accrued in interest and penalties. It is not Mayweather’s first brush with the IRS. He has been issued several tax liens since 2004. When a person is late on their back taxes, the IRS penalty is 0.5% of the tax owed on the due date. As time goes by, the penalties become more severe. The penalty increases to 25% for each month the tax liability remains unpaid. Ten days after the IRS issues a final notice for a levy, they can seize property and the 0.5% rate increases to 1% per month. Mayweather has been advised by his tax attorney to defer payments. It remains unclear whether such deferments are allowed in this case.
How a Fort Lauderdale Tax Lawyer Can Help
The dreaded letters “IRS” are something nobody wants to see in their mailbox. Although most responsible people in South Florida file and pay their taxes on time, there are others who avoid Uncle Sam. Many do not pay their taxes because they are drowning in debt. Regardless of your financial situation, everyone is required to file their taxes. If you owe back taxes, it is vital to seek representation from an experienced and knowledgeable Fort Lauderdale tax attorney. Depending on your situation, your attorney may be able to negotiate with IRS on a suitable payment plan to get out of debt. A good legal professional can also protect your rights and obtain, complete and file any necessary documentation and paperwork to help resolve your tax problems.
Contact Zuckerman Law, LLC for a Free Initial Consultation
Owing money to the IRS can be a helpless feeling. Fortunately, there are solutions. The Fort Lauderdale tax lawyers at Zuckerman Law, LLC have helped many people resolve their issues with the IRS. Attorneys Ira L. Zuckerman bring more than 30 years of combined experience helping clients with some of the most complex tax problems. To learn more, contact their Fort Lauderdale law office today and schedule a free initial consultation to discuss your case.