Mayweather waits until 12th round to pay IRS

[clevfan]

Sep. 23, 2009
Copyright © Las Vegas Review-Journal

Mayweather waits until 12th round to pay IRS

Tax agency considered garnishing boxer's purse

By OSKAR GARCIA
THE ASSOCIATED PRESS

Boxer Floyd Mayweather Jr. agreed to pay $5.6 million in back taxes before the Internal Revenue Service was poised to take the money from his purse after his Saturday comeback fight against Juan Manuel Marquez at the MGM Grand.

The IRS sent the Nevada Athletic Commission a levy notice Sept. 4 ordering Mayweather's unpaid taxes from 2007 to be deducted from his $10 million fight purse, commission executive director Keith Kizer said.

Kizer said the IRS backed off one week later, after Mayweather agreed to pay the money. Mayweather won the fight in a unanimous decision.

Mayweather's tax attorney, Jeffrey Morse, said Tuesday federal officials never intended to take Mayweather's purse and that the five-division champion has satisfied his IRS debts.

"Floyd has -- and I will absolutely attest to it -- more than satisfied every tax obligation that he has," Morse said. "As of today, as of some time ago, which I can't tell you when, he owes zero to the IRS."

Morse said he expected the IRS to release a $6.17 million lien filed with the county recorder's office in Las Vegas in October. Records on Tuesday showed the lien was still open.

IRS spokesman Raphael Tulino said he could not comment on individual tax matters.

A copy of the levy notice obtained by The Associated Press shows the IRS was seeking less than what it filed for in its lien. The notice dated Aug. 25 said Mayweather owed $4.71 million in unpaid taxes and $930,000 in statutory additions calculated through Sept. 25.

"Although we have given the notice and demand required by the (Internal Revenue) Code, the amount owed hasn't been paid," the notice to boxing regulators said. "This levy requires you to turn over to us this person's property and rights to property that you have or which you are already obligated to pay this person."

Kizer said the IRS did not notify the commission until fight week that the levy would not be necessary. Mayweather and all other fighters on the card were fully paid, Kizer said.

Morse said Mayweather owed substantially less than the $5.6 million levy, but would not say why it was valued at less than the original lien.

Morse said the levy itself was part of Mayweather's agreement with the IRS, not an impetus for the boxer nicknamed "Money" to settle the debt. Morse said the levy was used by the IRS as collateral.

"Unfortunately, if we knew that this information would be out there and disclosed to reporters, we probably wouldn't have entered into that agreement," Morse said. "Floyd likes to keep his private business private."

Mayweather has faced liens in the past and paid them off, according to recorder records in Clark County. The IRS filed liens totaling almost $6.3 million for unpaid taxes from 2001, 2003, 2005 and 2006.