As Floyd “Money” Mayweather prepares for his epic battle against UFC superstar Conor McGregor in August 2017, he’s also got something else on his mind — namely some unpaid tax liabilities.
According to a petition filed with the US Tax Court, Mayweather has asked for an installment agreement on paying his taxes from 2015, which total over $22 million. Apparently Mayweather has asked for the extension until he is paid for the McGregor fight.
“Although the taxpayer has substantial assets, those assets are restricted and primarily illiquid,” his attorneys wrote in their Tax Court filing. “The taxpayer has a significant liquidity event scheduled in about 60 days from which he intends to pay the balance of the 2015 tax liability due and outstanding.”
Mayweather has consistently paid his taxes late, and a number of tax liens have been filed against him, including in 2009 and 2011.
Because Mayweather owes substantially more than $50,000 to the IRS a Form 433A or Form 433F, Financial Statement will need to completed. The IRS then will review his ability to make payments and will dictate the amount the federal government is willing to accept.
In these installment agreement cases, the IRS uses a budget-based series of tables that determine the amount the IRS thinks taxpayers should pay for housing, food, clothing and transportation and other expenses.
If the amount paid on a monthly basis for any of these categories exceeds the amount the IRS thinks you should be paying, the IRS disallows the difference and expects you to pay those funds to the IRS even though they may not actually possess the funds.
The IRS will not grant an installment agreement until all prior unfiled tax returns have been filed. Failure to file all current tax returns on time while within the installment agreement will likely trigger the IRS to default the installment agreement.
If the IRS does default, it’s unlikely they will grant another installment agreement. If the IRS does grant another agreement, chances are they will make even more payment demands on a monthly basis.
Chicago tax lawyers Patrick T. Sheehan & Associates have negotiated thousands of installment agreements with the IRS. If you are interested in making affordable monthly payments to the IRS, contact us today.