The IRS loves a good fight – as millions of taxpayers have unfortunately learned the hard way. Of course, most of the time they aren’t fighting professional fighters. In this case, however, that’s exactly what they are doing. The IRS has recently filed a multi-million dollar tax lien against renowned boxer Manny Pacquiao.
And while Pacquiao likely isn’t scared of anyone in a boxing ring, he is likely going to discover that the IRS is every bit as relentless as his most worthy opponents. AccountingToday.com reports on the story:
The Internal Revenue Service has reportedly filed a tax lien for more than $18.3 million against Filipino boxer and politician Manny Pacquiao.
The unpaid taxes date from between 2006 and 2010, according to TMZ. Tax authorities in the Philippines have also filed claims against Pacquiao for over $50 million in taxes dating back to 2008 and 2009 from his boxing matches in the United States and have moved to freeze his bank accounts and seize one of his properties in Manila.
The fighter, nicknamed “Pac-Man,” reportedly fought 12 lucrative matches in the U.S. during the period in which the IRS is claiming back taxes, including a 2008 bout with Oscar De La Hoya in which he was guaranteed between $15 million and $30 million, and a 2009 fight with Ricky Hatton in which he earned $30 million.
The former eight-division world champion, who has won 10 world titles across different weight classes, fought last month in Macau after specifically requesting not to box in the United States, citing the high tax rates. As a foreign athlete who is not a U.S. citizen or resident, he only has to pay U.S. taxes on money he earns in this country.
Pacquiao’s manager and financial advisor told a newspaper in the Philippines that they have been discussing the tax issues with the IRS for over three years and that it is being handled by their attorneys in the U.S.
This story serves as yet another reminder that the IRS will come after anyone – rich or poor, famous or non-descript – if they feel there is revenue to be gained. And while it is too soon to say how Pacquiao’s case will play out, you can bet without a doubt that the IRS will exhaust every resource at their disposal in order to collect what they claim they are owed.
So what should you do if you find yourself in a similar situation? The first and most important thing to understand is that you should never face the IRS alone. The IRS has thousands of lawyers working on its behalf… and you need a lawyer on your team, as well. A tax attorney can force the IRS to play fair, and will work on your behalf to achieve the best possible result.
If you’re facing an IRS dispute, don’t delay. Contact us today to learn more about how we can help you get the IRS off your back and get back to enjoying your life!