Floyd Mayweather was poised to make some big money with his come back to fight with Juan Manuel Marquez. Mayweather had owed the IRS back taxes for quite some time now and they were quite aware of the earnings potential for this fight. The minimum take home for Mayweather would have been $3.2 million, but if he were to win, this amount would be around the $10 million + mark. The IRS had threatened to take his prize purse if he had failed to come to an agreement with the IRS. If he wins he will only be left with $400K of his $10 million in winnings.
Mayweather came to an agreement with the IRS before his fight with Marquez. Mayweather’s tax attorney claims that he now owes zero to the IRS and is in good standing with them. Recent records of recorded tax liens still show that the lien is active, but they can take time to get finally released. Mayweather owed a total of $4.7 million to the IRS and since this was unpaid since 2007, they tacked on another 900K in penalties, coming to a total of $5.6 million. It is unclear how much he ended up paying to the government.
Since Mayweather did win the fight and netted himself over $10 million in winnings, he would be left with very few options if he chose not to pay the IRS. Hopefully, Mayweather sets aside money from this fight to pay his 2009 taxes owed. With over ten million in winnings, he is likely to pay the IRS and state a total of $4 million in taxes. All in all with this win, after taxes (current and prior taxes paid) Mayweather will be left with approximately $400K of the $10 million in winnings.
This post was published on September 25, 2009