The Internal Revenue Service (IRS) does not hold back punches. The federal agency is currently attempting to gather late tax payments from one of the world's best fighters. Floyd Mayweather Jr. reportedly owes the federal agency $7.2 million in taxes from 2010 as well as $22.2 million from 2015.
Part of the high tax bill comes from a tax that is placed upon the fighter's winnings. These winnings are taxed and it appears the famous fighter has yet to make good on some of these bills.
In an interesting marketing strategy for an upcoming fight, a current rival is using this alleged tax bill as fodder to taunt the famous fighter. The martial arts star was leading a chant of "Pay your taxes! Pay your taxes!" at a scheduled promotion stop in Toronto. The New York Times reports that Conor McGregor, the famous mixed martial arts star from Ireland, is scheduled to fight the legend in August in Las Vegas.
Whether or not the marketing ploy will prove useful in the ring is yet to be known. However, the publicity stunt provides two lessons for those who are facing similar frustrations with the IRS:
- You are not alone. It does not matter if you are a multi-million dollar fight winning champion or an average Joe, the IRS could review your tax filings and claim that you are failing to meet your obligations as a taxpayer.
- You have options. Although anyone could find themselves dealing with claims that they owe the IRS back taxes, not everyone can bank on a multimillion dollar fight award to pay off their bill. Other options are available. One example is an offer in compromise. This essentially involves offering the IRS an amount that you can afford in exchange for forgiveness for the remaining tax debt.
It is wise to seek legal counsel if the IRS has claimed that you owe taxes or has notified you that your taxes are under review. Your tax lawyer can review the details of your situation and counsel you on the best course of action.